Assume the price of product Y (the quantity of which is plotted on the vertical axis) is initially $15 and the price of X (the quantity of which is plotted on the horizontal axis) is initially $3. Assume money income is initially $60. If the prices of Y and X now increase to $30 and $6 respectively and money income increases to $120, then the budget line will:
A) shift rightward and become steeper.
C) shift rightward, but its slope will not change.
B) shift rightward and become flatter.
D) be unchanged.
Ans: D) be unchanged.
Economics
You might also like to view...
Deregulation of the airline and trucking industries was followed by the creation of many new firms
a. True b. False Indicate whether the statement is true or false
Economics
In which field would economic rents likely be greatest for the best in their field?
A) farming B) teaching C) hockey D) car repairing
Economics