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.

ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter6: Consumer Choice And Demand
Section: Chapter Questions
Problem 2.5P
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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,
4.
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.
Transcribed Image Text: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, 4. 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.
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