Question

a shift in the budget line when price are constant is due to a. change in demand b. change in income c. change in preferences d. change in utility​

Answer 1

Answer:

An increase in income causes the budget line to shift outward, parallel to the original line (holding prices constant). A decrease in income causes the budget line to shift inward, parallel to the original line (holding prices constant) so a consumer can buy less of both goods with less income.