Assume initially that the price of X (the quantity of which is measured on the horizontal axis) is $9 and the price of Y (the quantity of which is measured on the vertical axis) is $4. If the price of X now declines to $6, the budget line will
A) be unaffected.
B) shift outward on the vertical axis.
C) shift inward on the horizontal axis.
D) shift outward on the horizontal axis.
Correct Answer:
Verified
Q311: The slope of a budget line reflects
Q312: The marginal rate of substitution measures the
A)magnitude
Q313: A budget line shows the
A)alternative combinations of
Q314: Indifference curve analysis
A)presumes, as does utility analysis,
Q315: If the price of A is $12
Q317: Which of the following is correct?
A)Budget lines
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents