Suppose that the price of Good X decreases. Which of the following will happen to the budget constraint? Select one: a. It will become flatter. b. It will have the same slope but shift towards the origin. c. It will have the same slope but shift away from the origin. d. It will be become steeper.

Suppose that the price of Good X decreases. Which of the following will happen to the budget constraint? Select one: a. It will become flatter. b. It will have the same slope but shift towards the origin. c. It will have the same slope but shift away from the origin. d. It will be become steeper.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose that the price of Good X decreases. Which of the following will
happen to the budget constraint?
Select one:
a. It will become flatter.
b.
It will have the same slope but shift towards the origin.
c.
It will have the same slope but shift away from the origin.
d. It will be become steeper.

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