What happens to a consumer's choice set if all prices and income double? (Hint: What happens to the intercepts of the budget line?) If all prices and income double then the budget line A. flattens. OB. rotates inward. O C. shifts outward. OD. becomes kinked. O E. does not change.

What happens to a consumer's choice set if all prices and income double? (Hint: What happens to the intercepts of the budget line?) If all prices and income double then the budget line A. flattens. OB. rotates inward. O C. shifts outward. OD. becomes kinked. O E. does not change.

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Theory Of Consumer Choice

Section: Chapter Questions

Problem 12PA

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