Question

If there is a parallel
rightward shift in the
price line it implies
fall in prices of the two goods
increase in consumer's income,
prices remaining constant
increase in the prices of the two
goods, income remaining constant
decrease in consumer's budget​

Answer 1

Answer:

Just as utility and marginal utility can be used to discuss making consumer choices along a budget constraint, these ideas can also be used to think about how consumer choices change when the budget constraint shifts in response to changes in income or price. Indeed, because the budget constraint framework can be used to analyze how quantities demanded change because of price movements, the budget constraint model can illustrate the underlying logic behind demand curves.

Explanation:

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Answer 2

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