Refer to the budget line shown in the diagram. Given the same money income, reductions in the prices of both products C and D will:
A. shift the budget line outward on the horizontal axis but leave it anchored at "10" on the
vertical axis.
B. shift the budget line to the left.
C. shift the budget line to the right.
D. have no effect on the budget line.
C. shift the budget line to the right.
You might also like to view...
How does conventional monetary policy work?
A. Fed selects target rate, uses OMO to change supply of reserves, and changes money supply to move to target B. changes supply of bank reserves through OMO, changes price of reserves, Fed Funds rate changes other interest rates C. changes money supply through OMO, changes Fed Funds rate D. all of the above
In a competitive market the ________ curve shows the marginal benefit received by consumers and the ________ curve shows the marginal cost to producers
A) demand; market demand B) supply; demand C) supply; market supply D) demand; supply