Solved

Assume That Food Is Measured on the Horizontal Axis and Clothing

Question 105

Multiple Choice

Assume that food is measured on the horizontal axis and clothing on the vertical axis. If the price of food falls relative to that of clothing, the budget line will:


A) become flatter.
B) become steeper.
C) shift outward.
D) become steeper or flatter depending on the relationship between prices and income.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q100: Sue views hot dogs and hot dog

Q101: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3095/.jpg" alt=" Figure 3.2.3 -Refer

Q102: Suppose a consumer only purchases food and

Q103: A budget line shows the combinations of:<br>A)

Q104: May enjoys spending her free time with

Q106: The revealed preference approach can provide more

Q107: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3095/.jpg" alt=" Figure 3.2.3 -Suppose

Q108: Consider the following three market baskets:Table 3.1<br>

Q109: Tammy and Tad's father has given each

Q110: The field of behavioral economics has been