When a person's income increases:
A. the individual's budget constraint shifts straight out, maintaining the same slope.
B. the individual's budget constraint shifts straight in, maintaining the same slope.
C. the individual's budget constraint rotates out and becomes flatter.
D. the individual's budget constraint rotates in and becomes steeper.
A. the individual's budget constraint shifts straight out, maintaining the same slope.
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According to your authors, entrepreneurial innovation is similar to arbitrage because both activities ultimately involve
A) obtaining inputs at relatively high prices and selling the output at lower prices. B) obtaining inputs at relatively low prices and selling the output at higher prices. C) the absence of uncertainty. D) the presence of perfect and complete information.
The market for toothpaste is a good example of perfect competition
a. True b. False Indicate whether the statement is true or false