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Suppose the Consumer's Income Increases While the Prices of the Goods

Question 181

Multiple Choice

Suppose the consumer's income increases while the prices of the goods remain constant.Then the


A) budget constraint shifts inward parallel to the original budget constraint.
B) budget constraint shifts outward parallel to the original budget constraint.
C) indifference curves shift outward away from the origin.
D) indifference curves become flatter.

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