Suppose the price of A is $20 and the price of B is $10 and that good A is plotted on the horizontal axis. If the price of A doubles and the price of B triples, leaving theconsumer’s income unchanged, the budget line a) will become steeper. b) will become flatter. c) will shift in toward the origin. d) will shift out from the origin.
Suppose the price of A is $20 and the price of B is $10 and that good A is plotted on the horizontal axis. If the price of A doubles and the price of B triples, leaving theconsumer’s income unchanged, the budget line a) will become steeper. b) will become flatter. c) will shift in toward the origin. d) will shift out from the origin.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose the
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a) will become steeper.
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b) will become flatter.
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c) will shift in toward the origin.
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d) will shift out from the origin.
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