Identify the Statement That Is False

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 x changes both the x -intercept and the slope of the budget constraint.
C) An increase in the price of good x and an equal percentage increase in the price of good y changes the x -intercept, the y -intercept, and the slope of the budget constraint.
D) An increase in the price of good x and an increase in the price of good
y may or may not change the slope of the budget constraint.