1. Explain how a consumer's income and the prices of goods limit consumption possibilities. A change in...
1. Explain how a consumer's income and the
prices of goods limit consumption possibilities.
A change in the prices of goods ______ and a
change in a consumer's income ______.
A. has no effect on the budget line; changes the slope of the
budget line
B. shifts the budget line; has no effect on the budget line
C. shifts the budget line; changes the slope of the budget line
D. changes the slope of the budget line; shifts
the budget line
2. Everything else remaining the same, consumption possibilities decrease when the price of a good _______ or income _______.
A. rises; decreases
B. falls; increases
C. falls; decreases
D. rises; increases
Homework Answers
1.Price of goods determine the slope of the budget line and income cause shifts in the budget line.
Answer-D
2.Consumptiin possibilities decrease with increase in the prices of goods or when the income of the consumer falls.
Answer-A
Add Answer to:
1. Explain how a consumer's income and the
prices of goods limit consumption possibilities.
A change in...
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