A change in the relative prices for two goods can be shown as a parallel shift in a consumer's budget line.

Name: A change in the relative prices for two goods can be shown as a parallel shift in a consumer's budget line.
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Quizplus · Accepted Answer

A change in the relative prices for two goods results in a pivot or rotation of the consumer's budget line, not a parallel shift. A parallel shift would indicate a change in the consumer's income or purchasing power, not a change in relative prices.

A Change in the Relative Prices for Two Goods Can