Multiple Choice
-In the figure above, suppose the original budget line is BD. A rise in the price of a compact disc will
A) rotate the budget line to AD.
B) rotate the budget line to CD.
C) not move the budget line.
D) result in a parallel leftward shift of the budget line.
Correct Answer:

Verified
Correct Answer:
Verified
Q285: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5274/.jpg" alt=" -The relative price
Q286: When the price of a normal good
Q287: A curve/line that shows combinations of goods
Q288: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5274/.jpg" alt=" -In the above
Q289: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5274/.jpg" alt=" -The figure above
Q291: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5274/.jpg" alt=" -Tom is stranded
Q292: "Every point on a budget line has
Q293: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5274/.jpg" alt=" -Lizzie's budget line
Q294: During October and November 2008, gasoline prices
Q295: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5274/.jpg" alt=" -The indifference curves