Asked by
Carson Holgate
on Oct 27, 2024
Verified
Chuck spends all of his income on tacos and milkshakes.His income is $100,the price of tacos is $10,and the price of milkshakes is $2.If the price of each good doubles and Chuck's income doubles:
A) Chuck's budget line will be unaffected.
B) Chuck's budget line will shift out.
C) Chuck's budget line will shift in.
D) Chuck will be able to buy more of both goods.
Budget Line
A graphical representation of all possible combinations of two goods that can be purchased with a given budget at specific prices.
Price Of Tacos
The amount consumers must pay to purchase tacos, which can vary based on ingredients, location, and other factors.
Price Of Milkshakes
Price Of Milkshakes refers to the cost that consumers pay to purchase milkshakes, varying by location, ingredients, and establishment.
- Describe the effects of price and income fluctuations on consumer preferences and fiscal constraints.
- Analyze the ramifications of price modifications on budgetary constraints and consumption alternatives.
Verified Answer
PS
Learning Objectives
- Describe the effects of price and income fluctuations on consumer preferences and fiscal constraints.
- Analyze the ramifications of price modifications on budgetary constraints and consumption alternatives.