When the price of one'good increases and the price of the other good and income are held constant, the budget Bine Select one rotates so that the intercept is farther from the origin on the axis representing the good that has experienced an increase in price shifts parallel to the original budget line so that the new budget line is closer to the origin b. rotates so that the intercept is closer to the origin on the axis representing the good that has expe C.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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When the price of one'good Increases and the price of the
other goot and income are held constant, the budget line
Select one:
rotates so that the intercept is farther
from the origin on the axis representing
the good that has experienced an
increase in price
shifts parallel to the original budget line
so that the new budget line is closer to
the origin
b.
rotates so that the intercept is closer to
the origin on the axis representing the
good that has experienced an increase
in price
C.
d shifts parallel to the original budget line
so that the new budget line is farther
from the origin
CLEAR MY CHOICE
Transcribed Image Text:When the price of one'good Increases and the price of the other goot and income are held constant, the budget line Select one: rotates so that the intercept is farther from the origin on the axis representing the good that has experienced an increase in price shifts parallel to the original budget line so that the new budget line is closer to the origin b. rotates so that the intercept is closer to the origin on the axis representing the good that has experienced an increase in price C. d shifts parallel to the original budget line so that the new budget line is farther from the origin CLEAR MY CHOICE
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