(Scenario: E-Books and Sports Tickets)Read the scenario E-Books and Sports Tickets.Phillip gets an increase in the amount of his monthly income allotted for e-books and sports tickets.Holding everything else constant,Phillip's budget line has: Scenario: E-Books and Sports Tickets
Phillip has an income of $300 per month,which he uses to purchase two goods,e-books and sports tickets.Each e-book costs $10,and each ticket costs $15.
A)shifted parallel inward to the origin.
B)rotated around the lower-priced good.
C)rotated around the higher-priced good.
D)shifted parallel outward away from the origin.

Question

Quizplus · Accepted Answer

An increase in the amount of monthly income allotted for e-books and sports tickets means that Phillip now has more money to spend on these goods. This will result in a shift parallel outward away from the origin on his budget line. This is because he can now afford to purchase more of both goods at each possible combination of quantities.

(Scenario: E-Books and Sports Tickets)Read the Scenario E-Books and Sports