Which of the following is not correct?
A) An increase in income shifts a consumer's budget constraint outward.
B) An increase in the price of good X causes a consumer's budget constraint to rotate inward along the X axis.
C) A decrease in the price of good Y causes a consumer's budget constraint to rotate outward along the Y axis.
D) Changes in income affect the slope of the budget constraint as well as its location on a graph.
Correct Answer:
Verified
Q213: When Jamar has an income of $2,000,
Q214: When Matt has an income of $2,000,
Q215: If income decreases and prices are unchanged,
Q216: The marginal rate of substitution between two
Q217: A normal good is one
A)the average consumer
Q219: Which of the following is most likely
Q220: If John's marginal utility derived from the
Q221: If the income effect counteracts the substitution
Q222: When the price of an inferior good
Q223: Energy drinks and granola bars are normal
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