Suppose there are two goods, the prices of both goods are positive, and a consumer's income is also positive. If the consumer's income halves and the price of both goods triple a. the slope of the consumer's budget line does not change but the budget line shifts outward away from the origin. b. the consumer's budget line gets steeper and shifts outward. c. the slope of the consumer's budget line does not change but the budget line shifts inward toward the origin. d. the consumer's budget line gets flatter and shifts inward.
Suppose there are two goods, the prices of both goods are positive, and a consumer's income is also positive. If the consumer's income halves and the price of both goods triple a. the slope of the consumer's budget line does not change but the budget line shifts outward away from the origin. b. the consumer's budget line gets steeper and shifts outward. c. the slope of the consumer's budget line does not change but the budget line shifts inward toward the origin. d. the consumer's budget line gets flatter and shifts inward.
Chapter6: Consumer Choice And Demand
Section: Chapter Questions
Problem 2.5P
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