23. Suppose that there are two goods in an economy and that all prices double. At the same time, the consumer’s income triples, then: (a) The budget line becomes steeper (b) The budget line becomes flatter (c) The budget line does not change (d) The slope of the budget line does not change, but it makes a parallel shift in towards the origin (e) The slope of the budget line does not change, but it makes a parallel shift out from the origin
23. Suppose that there are two goods in an economy and that all prices double. At the same time, the consumer’s income triples, then: (a) The budget line becomes steeper (b) The budget line becomes flatter (c) The budget line does not change (d) The slope of the budget line does not change, but it makes a parallel shift in towards the origin (e) The slope of the budget line does not change, but it makes a parallel shift out from the origin
Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter21: The Theory Of Consumer Choice
Section: Chapter Questions
Problem 2CQQ
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23. Suppose that there are two goods in an economy and that all prices double. At the same
time, the consumer’s income triples, then:
(a) The budget line becomes steeper
(b) The budget line becomes flatter
(c) The budget line does not change
(d) The slope of the budget line does not change, but it makes a parallel shift in towards
the origin
(e) The slope of the budget line does not change, but it makes a parallel shift out from
the origin
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