ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Consider the problem Marsha faces of how to allocate her weekly allowance between books and videos. How will an increase in Marsha’s allowance affect her budget on a supply and demand curve?
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Rotate her budget line, allowing her to buy more books but not more videos.
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Rotate her budget line, allowing her to buy more videos but not more books.
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Shift her budget line to the right.
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Shift her budget line to the left.
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Explanation:
Detailed explanation-1: -Consider the problem Marsha faces of how to allocate her weekly allowance between books and videos. How will an increase in Marsha’s allowance affect her budget on a supply and demand curve? Rotate her budget line, allowing her to buy more books but not more videos.
There is 1 question to complete.