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Introduction to Economics 1
Introduction to Economics 1 Deneme Sınavı
Introduction to Economics 1 Deneme Sınavı Sorusu #1192780
Introduction to Economics 1 Deneme Sınavı Sorusu #1192780
How does a decrease in income effects the budget constraint?
Budget constraint shifts forward paralel to the initial line. |
Budget constraint does not shift, there is movement only along the budget line. |
Budget constraint shifts backward paralel to the initial line. |
Budget constraint shifts inward, pivoting from the other good’s intercept. |
Budget constraint shifts upward paralel to the initial line. |
Yanıt Açıklaması:
A decrease in income lowers the intercepts of the budget line which cause a paralel backward shift
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