If the consumer's income increases, a. The budget line will swing outward (slope will become shallower)....
If the consumer's income increases,
a. The budget line will swing outward (slope will become shallower). b. The budget line will swing inward (slope will become steeper). c. The budget line will shift out parallel to the old budget line (the slope will be unchanged). d. The budget line will shift inward parallel to the old budget line (the slope will be unchanged). e. The indifference curves will change shape.
Homework Answers
Option C
- When the consumer's income Increases or decreases, the budget will shift in a parallel fashion.
- When the income of the consumer Increases, the budget line will shift out parallel to the old budget line.
- This is because with increased income, the consumer will be able to purchase more combination of goods.
- The budget line shifts outwards parallel to the old budget line as the prices remains the same , but the income Increases.
Add Answer to:
If the consumer's income increases,
a. The budget line will swing outward (slope will become
shallower)....
Given the graph below, if the consumer’s income decreases, a. The budget line will swing outward...
Given the graph below, if the consumer’s income decreases,
a. The budget line will swing outward (slope will become
shallower).
b. The budget line will swing inward (slope will become
steeper).
c. The budget line will shift out parallel to the old budget
line (the slope will be unchanged).
d. The budget line will shift inward parallel to the old budget
line (the slope will be unchanged).
e. The indifference curves will change shape.
Drs services Nurses services
Suppose you have drawn a consumer's budget line for food and clothing with food on the...
Suppose you have drawn a consumer's budget line for food and clothing with food on the horizontal axis and clothing on the vertical axis. If the price of food increases, A. the budget line shifts outward in a parallel fashion. B. the budget line becomes flatter. C. the budget line becomes steeper. D. the budget line shifts inward in a parallel fashion.
3. Originally, the price of X is $150 and the price of Y is S50. If the price of X increases by $20 and the price o...
3. Originally, the price of X is $150 and the price of Y is S50. If the price of X increases by $20 and the price of Y increases by S10, the new budget line will a. move outward and be parallel to the old budget line b. move outward and become steeper c. move inward and become steeper d. move outward and become flatter e. move inward and become flatter x"2 + 1n0) 4. An individual's preferences are represented...
managerial economics and strategy if the price of one good increases whike the price of another...
managerial economics and strategy
if
the price of one good increases whike the price of another good and
the consumers income remains unchanged, what will happen to the
budget line?
omework: Week 3 GRADED Homework me: 0 of 2 pts 12 of 20 (10 complete) 3-9 the price of one good increases while the price of the other good and the consumer's income remain unchanged what will happen to the budget line? A The budget line rotates inward from the...
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3. (3 Points) Intuitively describe what the slope of the budget line tells us about the consumer's ability to trade goods X and Y. 4. (6 Points) For each description of a change in the budget line given below, state which of the following increases or decreases for the budget constraint variables would cause it: † Px + PxPy. Pytw, and I W. (a) The budget line rotates inward around its horizontal intercept (meaning that it's horizontal intercept does NOT...
1. Explain how a consumer's income and the prices of goods limit consumption possibilities. A change in...
1. Explain how a consumer's income and the prices of goods limit consumption possibilities. A change in the prices of goods ______ and a change in a consumer's income ______. A. has no effect on the budget line; changes the slope of the budget line B. shifts the budget line; has no effect on the budget line C. shifts the budget line; changes the slope of the budget line D. changes the slope of the budget line; shifts the budget line 2. Everything else remaining the same, consumption possibilities...
ava Consider if Kat's budget increased to $12 instead. If graphed with the quantity of donuts...
ava Consider if Kat's budget increased to $12 instead. If graphed with the quantity of donuts on the X-axis and the quantity of bagels on the y-axis, the budget line would: Select one: a. shift outward b. shift inward c. pivot in on the x-axis d. pivot out on the y-axis Consider if the price of donuts increased to $3 instead. If graphed with the quantity of donuts on the x-axis and the quantity of bagels on the y-axis, the...
2) If the price of automobiles were to increase substantially, the demand curve for gasoline would most likely A) shift...
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In the following diagram, we show one of Jane's indifference curves and her budget line a. If the price of good...
In the following diagram, we show one of Jane's indifference curves and her budget line a. If the price of good X is $100, what is her income? b. What is the equation for her budget line? c. What is the slope of her budget line? d. What is the price of good Y? e. What is Jane's marginal rate of substitution in cquilibrium? 8. Good X 40 80 0 Good Y
In the following diagram, we show one of...
A Consumer's Demand for Burgers Suppose that the consumer has income, I = $20, and the...
A Consumer's Demand for Burgers Suppose that the consumer has income, I = $20, and the price of French fries is pe = $2. You are given the following information about the price of burgers and the number of burgers the consumer will buy at that price: Price of Burgers Quantity of Burgers A B C $1.00 $2.00 $5.00 10 5 2 Use an indifference curve and budget line diagram to draw the consumer's three budget lines and three optimal...
Given the graph below, if the consumer’s income decreases,
a. The budget line will swing outward (slope will become
shallower).
b. The budget line will swing inward (slope will become
steeper).
c. The budget line will shift out parallel to the old budget
line (the slope will be unchanged).
d. The budget line will shift inward parallel to the old budget
line (the slope will be unchanged).
e. The indifference curves will change shape.
Drs services Nurses services
3. Originally, the price of X is $150 and the price of Y is S50. If the price of X increases by $20 and the price of Y increases by S10, the new budget line will a. move outward and be parallel to the old budget line b. move outward and become steeper c. move inward and become steeper d. move outward and become flatter e. move inward and become flatter x"2 + 1n0) 4. An individual's preferences are represented...
managerial economics and strategy
if
the price of one good increases whike the price of another good and
the consumers income remains unchanged, what will happen to the
budget line?
omework: Week 3 GRADED Homework me: 0 of 2 pts 12 of 20 (10 complete) 3-9 the price of one good increases while the price of the other good and the consumer's income remain unchanged what will happen to the budget line? A The budget line rotates inward from the...
3. (3 Points) Intuitively describe what the slope of the budget line tells us about the consumer's ability to trade goods X and Y. 4. (6 Points) For each description of a change in the budget line given below, state which of the following increases or decreases for the budget constraint variables would cause it: † Px + PxPy. Pytw, and I W. (a) The budget line rotates inward around its horizontal intercept (meaning that it's horizontal intercept does NOT...
ava Consider if Kat's budget increased to $12 instead. If graphed with the quantity of donuts on the X-axis and the quantity of bagels on the y-axis, the budget line would: Select one: a. shift outward b. shift inward c. pivot in on the x-axis d. pivot out on the y-axis Consider if the price of donuts increased to $3 instead. If graphed with the quantity of donuts on the x-axis and the quantity of bagels on the y-axis, the...
In the following diagram, we show one of Jane's indifference curves and her budget line a. If the price of good X is $100, what is her income? b. What is the equation for her budget line? c. What is the slope of her budget line? d. What is the price of good Y? e. What is Jane's marginal rate of substitution in cquilibrium? 8. Good X 40 80 0 Good Y
In the following diagram, we show one of...
A Consumer's Demand for Burgers Suppose that the consumer has income, I = $20, and the price of French fries is pe = $2. You are given the following information about the price of burgers and the number of burgers the consumer will buy at that price: Price of Burgers Quantity of Burgers A B C $1.00 $2.00 $5.00 10 5 2 Use an indifference curve and budget line diagram to draw the consumer's three budget lines and three optimal...
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