Which statement is true?
A)The further down a food and shelter budget line a consumer moves, the more of his budget he is spending.
B)When the price of good X (on the horizontal axis) falls and the price of good Y rises, the budget line gets steeper.
C)When Pete adopts a corner solution he is definitely not maximizing utility.
D)The "composite good" shows the amount of money the consumer has spent on good X in the two good optimizing model.

Question

Quizplus · Accepted Answer

The Answer of Which statement is true?
A)The further down a food and shelter budget line a consumer moves, the more of his budget he is spending.
B)When the price of good X (on the horizontal axis) falls and the price of good Y rises, the budget line gets steeper.
C)When Pete adopts a corner solution he is definitely not maximizing utility.
D)The "composite good" shows the amount of money the consumer has spent on good X in the two good optimizing model.

Which Statement Is True