Question
In the law of demand, keeping everything else constant refers to a. only the prices of other goods b. prices of other goods , income
In the law of demand, keeping everything else constant" refers to
a. only the prices of other goods
b. prices of other goods , income and preferences
c. Price of the good itself, income and preferences
d. only the income
2.If the price of good Y ( the good on the Y-axis, the vertical one) decreases:
a.the budget line will shift right
b. the budget line will rotate downwards, keeping the X-axis intercept constant
c.The budget line will rotate upwards, keeping the x-axis intercept constant
d.The budget line will rotate upward, keeping the y-axis intercept constant
3.Let's assume that chicken wings and pizzas are substitutes. If the price of chicken wings decreases, what happens?
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