Homework Help is Here – Start Your Trial Now!
Business
Economics
Suppose there are two goods, the prices of both goods are positive, and a consumer's income is also positive. If the consumer's income halves and the price of both goods triple a. the slope of the consumer's budget line does not change but the budget line shifts outward away from the origin. b. the consumer's budget line gets steeper and shifts outward. c. the slope of the consumer's budget line does not change but the budget line shifts inward toward the origin. d. the consumer's budget line gets flatter and shifts inward.

Suppose there are two goods, the prices of both goods are positive, and a consumer's income is also positive. If the consumer's income halves and the price of both goods triple a. the slope of the consumer's budget line does not change but the budget line shifts outward away from the origin. b. the consumer's budget line gets steeper and shifts outward. c. the slope of the consumer's budget line does not change but the budget line shifts inward toward the origin. d. the consumer's budget line gets flatter and shifts inward.

Principles of Microeconomics (MindTap Course List)
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
See similar textbooks
icon
Related questions
Question
Suppose there are two goods, the prices of both goods are positive, and a consumer's income is also positive. If the consumer's income halves and the price of both goods triple, 4. a. the slope of the consumer's budget line does not change but the budget line shifts outward away from the origin. b. the consumer's budget line gets steeper and shifts outward. c. the slope of the consumer's budget line does not change but the budget line shifts inward toward the origin. d. the consumer's budget line gets flatter and shifts inward.
Transcribed Image Text:Suppose there are two goods, the prices of both goods are positive, and a consumer's income is also positive. If the consumer's income halves and the price of both goods triple, 4. a. the slope of the consumer's budget line does not change but the budget line shifts outward away from the origin. b. the consumer's budget line gets steeper and shifts outward. c. the slope of the consumer's budget line does not change but the budget line shifts inward toward the origin. d. the consumer's budget line gets flatter and shifts inward.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Substitute Goods
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Principles of Microeconomics (MindTap Course List)
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:
9781305971493
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Microeconomics
Principles of Microeconomics
Economics
ISBN:
9781305156050
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Micro Economics For Today
Micro Economics For Today
Economics
ISBN:
9781337613064
Author:
Tucker, Irvin B.
Publisher:
Cengage,
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou…
Principles of Economics, 7th Edition (MindTap Cou…
Economics
ISBN:
9781285165875
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
SEE MORE TEXTBOOKS