If income where to double and prices were to to double the budget line would ?
Correct answer: A. stay the same
- A. stay the same
- B. rotate inward
- C. shift outward in a parallel fashion
- D. rotates outward
- E. shift inward in parallel fashion
Explanation
Doubling income doubles both budget intercepts, while doubling both prices halves each intercept. The two effects exactly offset, so the budget line remains unchanged.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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