Introduction to Economics 1 Deneme Sınavı Sorusu #1214073
Which of the following statement is correct about the budget line when the price of one of the good changes (increases)?
|
If the price of one good increases, the budget line shifts outward. |
|
If the price of one good increases, the budget line shifts inward. |
|
If the price of one good increases, the budget line does not shift. |
|
If the price of one good increases, the budget line shifts outward, pivoting from the other good’s intercept. |
|
If the price of one good increases, the budget line shifts inward, pivoting from the other good’s intercept. |
Budget Constraint
If the price of one good increases, the budget line shifts inward, pivoting from the other good’s intercept. If the price of one good decreases, the budget line shifts outward, pivoting from the other good’s intercept. Effect of Change in the Price of Good X on Budget Line: If the original budget line is in the middle, an increase in the price of good X shifts the budget line outward and a decrease in the price of good X shifts it inward.
Yorumlar
- 0 Yorum