Multiple Choice
In year 1, the price of good x was $4, the price of good y was $1, and income was $70.In year 2, the price of x was $9, the price of good y was $2, and income was $70.On a graph with x on the horizontal axis and y on the vertical, the new budget line is
A) steeper than the old one and lies below it.
B) steeper than the old one and lies above it.
C) flatter than the old one and lies below it.
D) flatter than the old one and lies above it.
E) None of the above.
Correct Answer:

Verified
Correct Answer:
Verified
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