Suppose initially that the price of X is $5, the price of Y is $10, and the consumer's income is $100. If Y is measured on the vertical axis, X is measured on the horizontal axis, and the price of Y increases to $20: a. the entire budget line will shift inward toward the origin, with its slope changing from –1/2 to –1/4. b. the budget line will pivot inward toward the origin along the X axis, with its slope changing from –1/2 to –1/4. c. the budget line will pivot inward toward the origin along the Y axis, with the slope changing from
Suppose initially that the price of X is $5, the price of Y is $10, and the consumer's income is $100. If Y is measured on the vertical axis, X is measured on the horizontal axis, and the price of Y increases to $20: a. the entire budget line will shift inward toward the origin, with its slope changing from –1/2 to –1/4. b. the budget line will pivot inward toward the origin along the X axis, with its slope changing from –1/2 to –1/4. c. the budget line will pivot inward toward the origin along the Y axis, with the slope changing from
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
100%
Suppose initially that the
a. the entire budget line will shift inward toward the origin, with its slope changing from –1/2 to –1/4.
b. the budget line will pivot inward toward the origin along the X axis, with its slope changing from –1/2 to –1/4.
c. the budget line will pivot inward toward the origin along the Y axis, with the slope changing from –1/2 to –1/4.
d. the budget line will pivot inward toward the origin along the Y axis, with the slope changing from –1/4 to –1/2.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education