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Identify the Statement That Is False xx Changes Both The xx -Intercept and the Slope of the Budget Constraint

Question 6

Multiple Choice

Identify the statement that is false.


A) An increase in the amount of income changes the intercepts of the budget constraint but not the slope.
B) An increase in the price of good xx changes both the xx -intercept and the slope of the budget constraint.
C) An increase in the price of good xx and an equal percentage increase in the price of good yy changes the xx -intercept, the yy -intercept, and the slope of the budget constraint.
D) An increase in the price of good xx and an increase in the price of good yy may or may not change the slope of the budget constraint.

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