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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