Introduction to Economics 1 Deneme Sınavı Sorusu #1192664

How does an increase in income effects the budget constraint?


Budget constraint shifts to right.

Budget constraint's slope increases.

Budget constraint is not affected.

Budget constraint's slope decreases.

Budget constraint shifts to left.


Yanıt Açıklaması:

the budget line shows all of the combinations of quantities of X and Y that a consumer can purchase. An increase in income  causes the budget line to shift outward (right), parallel to the original line.

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