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Question
An outward, parallel shift in the budget line indicates thata. the consumer's income has risen.
b. the consumer's demand for the good on the horizontal axis has risen.
c. the price of the good on the horizontal axis has fallen.
d. all commodity prices have simultaneously risen.
Answer
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Related questions
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If demand rises and supply falls, which of the following must be true?
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If demand rises and supply falls, which of the following must be true?
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New safety regulations increase manufacturers' costs of producing insulation. What happens in the market for insulation?
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Suppose the price of a DVD is $15 per unit. At that price, consumers wish to purchase 6,000 units weekly and producers wish to sell 4,000 units weekly. In this situation,
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In a supply-demand diagram, the law of supply is illustrated by
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Surveys show that a small increase in the price of organic potatoes will cause most people to switch to other alternatives such as packaged mashed potatoes. This finding suggests that the demand curve for organic potatoes is
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Suppliers of a commodity are better off whenever the legal incidence of a tax is shifted away from the suppliers to the demanders.
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If the price and quantity exchanged of a good simultaneously rise, then the law of demand has been violated.
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As defined by economists, the supply of corn refers to the number of bushels of corn that farmers bring to the market.
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A point on the firm's expansion path both minimizes the cost of producing a given output level and maximizes the output obtained for a given expenditure level.
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Output is held fixed along an isocost.
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All baskets of labor and capital capable of producing a given level of output are technologically efficient.
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Consider a firm that produces peanut butter. An increase in the price of peanuts will cause the firm to lower its output because
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If the total benefits received from drug enforcement exceed its total costs, then the government should expand its drug enforcement activity.
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With an increase in income, we can predict that a consumer will choose a new market basket
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With an increase in income, a consumer can increase the quantity consumed of
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