Suppose that good X is on the horizontal axis and all other goods (measured in dollars) are on the vertical axis in the consumer-choice diagram. If the consumer gains $10 in income, then
a. the new budget line is parallel to and lies 10 units to the left of the old budget line.
b. the budget line shifts up by 10 dollars, with no change in the slope.
c. the vertical intercept of the budget line shifts up by $10, but the horizontal intercept remains unchanged.
d. the slope of the budget line increases by 10 percent.
b. the budget line shifts up by 10 dollars, with no change in the slope.
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A term that categorizes patterns of exchange rate behavior is known as:
a. exchange rate regimes. b. exchange rate realms. c. exchange rate principles. d. exchange rate observations.
Consumer surplus arises in a market because
A. at the current market price, quantity supplied is greater than quantity demand B. the current market price, quantity demanded is greater than quantity supplied. C.the market price is below what some consumers are willing to pay for the product. D. the market price is higher than what some consumers are willing to pay for the product.