What would happen to the budget line if income as well as prices of both goods increase by the same percentage?

Name: What would happen to the budget line if income as well as prices of both goods increase by the same percentage?
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Question

Quizplus · Accepted Answer

If income and prices of both goods increase by the same percentage, it means the relative prices of the two goods remain constant, and therefore, the initial budget line remains unchanged, resulting in no shift.

What Would Happen to the Budget Line If Income as Well