14. Suppose good X is on the horizontal axis and good Y is on the vertical axis. Which of the following will SHIFT the budget line to the right? A. Increase in budget/income of the consumer B. Increase in the Price of X C. Decrease in the prices of both X and Y D. Both A and CX

14. Suppose good X is on the horizontal axis and good Y is on the vertical axis. Which of the following will SHIFT the budget line to the right? A. Increase in budget/income of the consumer B. Increase in the Price of X C. Decrease in the prices of both X and Y D. Both A and CX

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Concept explainers

Normal and Inferior Goods

Understanding a normal good and an inferior good is important because it tells us what will happen to demand different products during booms and recessions.

Question

14. Suppose good X is on the horizontal axis and good Y is
on the vertical axis. Which of the following will SHIFT the
budget line to the right? A. Increase in budget/income of
the consumer B. Increase in the Price of X C. Decrease in
the prices of both X and Y D. Both A and CX

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f 1 Appendix - showing an indifference curve. Quantity of Y C B Quantity of X The slope of the budget line facing the consumer is a. -Px/Py O b. -X/Y O c. -Py/Px d. -Y/X e. none of the above
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(D)