Asked by
Hawra AL Harthi
on Oct 08, 2024
Verified
A change in the slope of a budget line is solely the result of a change in:
A) consumer preferences.
B) the price of one good relative to the other.
C) money income.
D) the slope of the indifference curve that is tangent to the budget line.
Indifference Curve
A curve showing the different combinations of two products that yield the same satisfaction or utility to a consumer.
Budget Line
A graphical representation of all possible combinations of two goods that a consumer can afford with their income at current prices.
- Analyze the consequences of alterations in income and pricing on the decision processes of consumers and the budget line's placement.
Verified Answer
JB
Learning Objectives
- Analyze the consequences of alterations in income and pricing on the decision processes of consumers and the budget line's placement.