Economy, asked by gameknight8850, 7 months ago

What happens to the budget line when the prices double and the consumer’s income halved?

Answers

Answered by manishchandra339
8

Answer:

As income increases and the prices do not change, the consumer can buy more of both the goods.

This is because the consumer can buy larger quantities of both goods with the same price.

In this case the budget line will shift to the right parallel to the original budget line.

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