Leyla consumes goods X and Y. The price of good X is Px and the price of good Y is Py, Leyla’s income is I. If both prices and Leyla’s income increases by 50%, then the A) budget constraint will be unchanged. B) slope of the budget constraint will increase. C) slope of the budget constraint will decrease. D) budget constraint will shift outward in a parallel fashion. E) None of the above .

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Chapter21: The Theory Of Consumer Choice
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12) Leyla consumes goods X and Y. The price of good X is Px and the price of good Y is
Py, Leyla’s income is I. If both prices and Leyla’s income increases by 50%, then the
A) budget constraint will be unchanged.
B) slope of the budget constraint will increase.
C) slope of the budget constraint will decrease.
D) budget constraint will shift outward in a parallel fashion.
E) None of the above .

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