If a consumer's income rises, herSelected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.abudget line shifts outward.bbudget line shifts inward.cbudget line becomes steeper.dopportunity cost of consuming normal goods rises.eopportunity cost of consuming inferior goods rises.

If a firm increases its output level in the short run, thenSelected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.avariable costs rise, but fixed costs remain unchangedbboth variable costs and fixed costs risecvariable costs rise, but fixed costs falldvariable costs remain unchanged, but fixed costs rise

A consumer’s budget line depictsSelected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.athe utility that an individual would receive from consuming various combinations of two goodsbthe combinations of goods that a person can afford at given prices and incomechow changes in income affect utility for given pricesdthe combinations of goods where marginal utility divided by price is the same for all goods

When price is below the equilibrium level in a competitive market, the price will be driven upward due toSelected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.aexcess supply.bgovernment intervention.ccompetition among suppliers.dexcess demand.etechnical inefficiency.

Suppose that a 10 cent tax per apple is imposed on apple growers (producers). ThenSelected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.athe effective supply curve will shift upwards by 10 centsbthe effective supply curve will shift upwards by 5 centscthe effective supply curve will shift downwards by 10 centsdthe effective demand curve will shift upwards by 5 centsethe effective demand curve will shift downwards by 10 cents

Suppose that there are external benefits in an otherwise perfectly competitive market. The market will produce ______________ the allocatively efficient level of output.Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.amore thanbless thancan amount equal todeither an amount equal to or an amount more than