Answered: Question 1 - If a household's income…

Question 1 - If a household's income doubles, its budget constraint will a-shift out parallel to the old one. b-pivot at the Y-intercept. c-shift in parallel to the old one. d-be unaffected.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Theory Of Consumer Choice

Section21.1: The Budget Constraint: What The Consumer Can Afford

Problem 1QQ

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Question 1 - If a household's income doubles, its budget constraint will

a-shift out parallel to the old one.
b-pivot at the Y-intercept.
c-shift in parallel to the old one.
d-be unaffected.

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