When the price of a good increases, the budget constraint does not change.

Name: When the price of a good increases, the budget constraint does not change.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The budget constraint represents the combination of goods and services a consumer can purchase with a given income. When the price of a good increases, the consumer can afford less of that good, effectively changing the budget constraint.

When the Price of a Good Increases, the Budget Constraint