Solved

Suppose That the Prices of Good X and Good Y

Question 51

Multiple Choice

Suppose that the prices of good x and good y both double and income triples.On a graph where the budget line is drawn with x on the horizontal axis and y on the vertical axis,


A) the budget line becomes steeper and shifts inward.
B) the budget line becomes flatter and shifts outward.
C) the budget line becomes flatter and shifts inward.
D) the new budget line is parallel to the old budget line and lies below it.
E) None of the above.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions