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Suppose Alice Spends Her Entire Budget on Books and Movie

Question 14

Multiple Choice

Suppose Alice spends her entire budget on books and movie downloads. If her budget does not change, and the price of a book stays the same, but the price of a downloaded movie falls, her budget line


A) does not change because her budget has not changed.
B) shifts inward and its slope does not change.
C) shifts outward and its slope does not change.
D) rotates outward and its slope changes.
E) rotates inward and its slope changes.

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