An equal and proportional increase in money income and all money prices will... a. Shift the budget line to the right parallel to the original budget line. b. Leave the position of the budget line unchanged. c. Shift the budget line to the left parallel to the original budget line. d. Rotate the budget line inward from the vertical axis. e. Rotate the budget line inward from the horizontal axis.
An equal and proportional increase in money income and all money prices will... a. Shift the budget line to the right parallel to the original budget line. b. Leave the position of the budget line unchanged. c. Shift the budget line to the left parallel to the original budget line. d. Rotate the budget line inward from the vertical axis. e. Rotate the budget line inward from the horizontal axis.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Q75
An equal and proportional increase in money income and all money prices will...
a.
Shift the budget line to the right parallel to the original budget line.
b.
Leave the position of the budget line unchanged.
c.
Shift the budget line to the left parallel to the original budget line.
d.
Rotate the budget line inward from the vertical axis.
e.
Rotate the budget line inward from the horizontal axis.
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