Question

.What will happen to the budget line when: a) Price of 1 good rises b) Price of good 2 falls c) Money income of the consumer rises.

Answer 1

Answer:

Let good 1 is on x axis and good 2 is on y axis. a) When price of good 1 rises, budget line will become steeper. b) When price of good 2 falls, it will be steeper. ... 13 per units , the consumer buys 11 units of that good .