If income and the prices of both goods all double,the budget line will
A)become flatter
B)become steeper
C)remain unchanged
D)experience a parallel outward shift
E)experience a parallel inward shift

Question

Quizplus · Accepted Answer

If the income and the prices of both goods all double, it means that the ratio of the prices of the two goods and the ratio of the income to the prices of the two goods remain the same. Therefore, the budget line will remain unchanged, as it represents all the different combinations of the two goods that can be purchased at a given income and prices.

If Income and the Prices of Both Goods All Double,the