Solved

A Decrease in Income Will Cause a Consumer's Budget Constraint

Question 440

Multiple Choice

A decrease in income will cause a consumer's budget constraint to


A) shift outward, parallel to its initial position.
B) shift inward, parallel to its initial position.
C) pivot along the horizontal axis.
D) pivot along the vertical axis.

Correct Answer:

verifed

Verified

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

Related Questions

Q165: Because people are more willing to trade

Q175: When indifference curves are bowed inward, the

Q435: Figure 21-8 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1273/.jpg" alt="Figure 21-8

Q437: Suppose a consumer has an income of

Q438: A consumer chooses an optimal consumption point

Q441: If the price of a good increases,

Q442: If we observe that a consumer's budget

Q443: Figure 21-16 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1273/.jpg" alt="Figure 21-16

Q444: We can use the theory of consumer

Q445: Suppose a consumer spends his income on