When an individual's income decreases, the slope of the budget constraint stays the same because:

Name: When an individual's income decreases, the slope of the budget constraint stays the same because:
Brand: Quizplus
Rating: 4.8 (36 reviews)

Question

Quizplus · Accepted Answer

The slope of the budget constraint represents the rate at which one good can be substituted for another based on their relative prices. A change in income affects the position of the budget line but not its slope, since the relative prices of the goods remain unchanged.

When an Individual's Income Decreases, the Slope of the Budget