If we observe that William's budget constraint has moved inward, then we know for certain that
a. his income must have decreased.
b. he will be indifferent between goods X and Y.
c. the price of one or both of the goods must have increased.
d. his utility will decrease.
d
Economics
You might also like to view...
A fall in the price of lemons from $10.50 to $9.50 per bushel increases the quantity demanded from 19,200 to 20,800 bushels. The price elasticity of demand is
A) 0.80. B) 1.20. C) 1.25. D) 8.00.
Economics
The fluctuations in both money supply growth and the federal funds rate during 1979-1982 suggest that the Fed
A) had shifted to borrowed reserves as an operating target. B) had shifted to total reserves as an operating target. C) had shifted to the monetary base as an operating target. D) never intended to target monetary aggregates.
Economics