Assume Roger has $48 to spend on books and movie tickets and his budget constraint is represented by line B in the graph shown. What would cause his budget constraint to move to line A?
A) Roger gets a raise at work.
B) Roger gets unlimited coupons for $2 off the price of a movie ticket.
C) The price of movie tickets increases to $8.
D) None of these changes would cause Roger's budget constraint to move from line B to line A.
Correct Answer:
Verified
Q103: In general, the income effect of an
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