Introduction to Economics 1 Deneme Sınavı Sorusu #1225195

Assume two goods, X and Y. X on the horizontal axis and Y on the vertical axis,respectively. What would happen to the budget constraint if there is an increase in Px while income and Py remain constant?

                                     

                                                                                          

                                                                                     X


Budget constraint will get steeper

Budget constraint will get flatter

Budget constraint will remain the same

Budget constraint will parallely shift outwards.

Budget constraint will parallely shift inwards.


Yanıt Açıklaması:

With the assumption that income and Py remain constant, an inrease in Px from 1$ to 2$ increases the absoluate value of the slope of the budget line—leading to an inward tilt or
getting steepe. The answer is A.

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