If the Prices of Two Goods,X and Y,increase by 50

Multiple Choice

If the prices of two goods,X and Y,increase by 50 percent and the consumer's income rises by 100 percent:

A) the slope of the consumer's budget line will change,becoming flatter to indicate that X and Y are now relatively less expensive.
B) the consumer's budget line will shift out from the origin,with its slope unchanged.
C) the consumer's budget line will shift out from the origin and its slope will also change,reflecting the lower prices for X and Y.
D) the consumer's budget line will remain unchanged as the price and income effects will cancel each other out.