Question

What will be the effect on budget line if income of the consumer changes but price of

both good remains unchanged? Explain with Diagram​

Answer 1

Answer:

The effect of changes in income on the budget line is shown in Fig. 8.18. ... On the other hand, if income of the consumer decreases, prices of both goods X and Y remaining unchanged, the budget line shifts downward (say, to B”L”) but remains parallel to the original price line BL.

Answer 2

Answer:

this will be the effect on budget line is income of the consumer changes but rights of both goods running unchanged