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If a Consumer Purchases Two Goods,food (Measured Along the

Question 30

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If a consumer purchases two goods,food (measured along the If a consumer purchases two goods,food (measured along the   axis)  and housing (measured along the   axis) ,then what happens to the slope of the consumer's budget constraint if the price of food falls? A)  The new budget constraint shifts inward but is parallel to the original budget constraint. B)  The new budget constraint pivots inward (towards the origin)  along the   axis. The new slope is steeper than the original slope. C)  The new budget constraint pivots inward (towards the origin)  along the   axis. The new slope is flatter than the original slope. D)  The new budget constraint pivots outward (away from the origin)  along the   axis. The new slope is flatter than the original slope. axis) and housing (measured along the If a consumer purchases two goods,food (measured along the   axis)  and housing (measured along the   axis) ,then what happens to the slope of the consumer's budget constraint if the price of food falls? A)  The new budget constraint shifts inward but is parallel to the original budget constraint. B)  The new budget constraint pivots inward (towards the origin)  along the   axis. The new slope is steeper than the original slope. C)  The new budget constraint pivots inward (towards the origin)  along the   axis. The new slope is flatter than the original slope. D)  The new budget constraint pivots outward (away from the origin)  along the   axis. The new slope is flatter than the original slope. axis) ,then what happens to the slope of the consumer's budget constraint if the price of food falls?


A) The new budget constraint shifts inward but is parallel to the original budget constraint.
B) The new budget constraint pivots inward (towards the origin) along the If a consumer purchases two goods,food (measured along the   axis)  and housing (measured along the   axis) ,then what happens to the slope of the consumer's budget constraint if the price of food falls? A)  The new budget constraint shifts inward but is parallel to the original budget constraint. B)  The new budget constraint pivots inward (towards the origin)  along the   axis. The new slope is steeper than the original slope. C)  The new budget constraint pivots inward (towards the origin)  along the   axis. The new slope is flatter than the original slope. D)  The new budget constraint pivots outward (away from the origin)  along the   axis. The new slope is flatter than the original slope. axis. The new slope is steeper than the original slope.
C) The new budget constraint pivots inward (towards the origin) along the If a consumer purchases two goods,food (measured along the   axis)  and housing (measured along the   axis) ,then what happens to the slope of the consumer's budget constraint if the price of food falls? A)  The new budget constraint shifts inward but is parallel to the original budget constraint. B)  The new budget constraint pivots inward (towards the origin)  along the   axis. The new slope is steeper than the original slope. C)  The new budget constraint pivots inward (towards the origin)  along the   axis. The new slope is flatter than the original slope. D)  The new budget constraint pivots outward (away from the origin)  along the   axis. The new slope is flatter than the original slope. axis. The new slope is flatter than the original slope.
D) The new budget constraint pivots outward (away from the origin) along the If a consumer purchases two goods,food (measured along the   axis)  and housing (measured along the   axis) ,then what happens to the slope of the consumer's budget constraint if the price of food falls? A)  The new budget constraint shifts inward but is parallel to the original budget constraint. B)  The new budget constraint pivots inward (towards the origin)  along the   axis. The new slope is steeper than the original slope. C)  The new budget constraint pivots inward (towards the origin)  along the   axis. The new slope is flatter than the original slope. D)  The new budget constraint pivots outward (away from the origin)  along the   axis. The new slope is flatter than the original slope. axis. The new slope is flatter than the original slope.

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