Multiple Choice
Mark spends his weekly income on gin and cocktail olives.The price of gin has risen from $7 to $9 per bottle,the price of cocktail olives has fallen from $6 to $5 per jar,and Mark's income has stayed fixed at $46 per week.If you illustrate gin on the vertical axis and cocktail olives on the horizontal axis,then the budget constraint
A) is steeper after the price changes.
B) is flatter after the price changes.
C) is the same after the price changes.
D) shifts in a parallel fashion to the old budget constraint after the price changes.
Correct Answer:
Verified
Correct Answer:
Verified
Q24: The income effect of a price change
Q100: Which of the following is an example
Q103: If income increases and prices are unchanged,
Q155: At a consumer's optimal choice, the consumer
Q226: Suppose the only two goods that Brett
Q258: The change in consumption that results when
Q261: If the consumer's income and all prices
Q262: The labor supply curve may have a
Q265: The following diagram shows two budget lines:
Q565: The goal of the consumer is to<br>A)maximize