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George Has a Weekly Income (I) of $50, Which He

Question 35

Multiple Choice

George has a weekly income (I) of $50, which he uses to purchase doughnuts (D) and coffee (C) . The price of a doughnut is $1 and the price of coffee is $2.50. Suppose George's income increases to $100 and the prices of both doughnuts and coffee remain unchanged. Given this income change, one would expect George's budget line:


A) to shift to the right.
B) to shift to the left.
C) to rotate around the coffee axis point.
D) not to be affected.

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