Suppose there are only two goods,food and clothing,with food measured on the vertical axis.If the price of clothing changes,holding all else constant,
A) the budget line undergoes a parallel shift to the right
B) the budget line undergoes a parallel shift to the left
C) a new point of utility maximization will be reached
D) the budget line becomes flatter
E) the slope of the budget line remains constant
Correct Answer:
Verified
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