Hold Jared's preferences for pizza and Pepsi constant. Suppose Jared's income, as well as the prices of pizza and Pepsi, double. As a result,
A)both Jared's indifference curves and his budget constraint change.
B)Jared's indifference curves change, but his budget constraint does not change.
C)Jared's budget constraint changes, but his indifference curves do not change.
D)neither Jared's indifference curves nor his budget constraint change.

Question

Quizplus · Accepted Answer

The Answer of Hold Jared's preferences for pizza and Pepsi constant. Suppose Jared's income, as well as the prices of pizza and Pepsi, double. As a result,
A)both Jared's indifference curves and his budget constraint change.
B)Jared's indifference curves change, but his budget constraint does not change.
C)Jared's budget constraint changes, but his indifference curves do not change.
D)neither Jared's indifference curves nor his budget constraint change.

Hold Jared's Preferences for Pizza and Pepsi Constant