The quantity of good Y is measured along the vertical axis, and the quantity of good X is measured along the horizontal axis. If the prices of both good Y and good X rise, the budget line
A) shifts outward to the right and the vertical and horizontal intercepts will both rise.
B) shifts inward to the left and both intercepts will decline.
C) rotates, rising along the vertical axis but falling along the horizontal axis.
D) none of the above.
Answer: B
Economics
You might also like to view...
In the above figure, Jill's opportunity cost of producing 1 gallon of soda is ________ of bottled water
A) 2 gallons B) 1/4 of a gallon C) 4 gallons D) 1/2 of a gallon E) 1 gallon
Economics
Resource price differentials that do not trigger the reallocation of resources are known as
a. temporary differentials b. market differentials c. conditional differentials d. permanent differentials e. sustainable differentials
Economics