An increase in income will cause a consumer's budget constraint to

Name: An increase in income will cause a consumer's budget constraint to
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Question

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An increase in income will cause the consumer's budget constraint to shift outward. This means that the consumer will be able to purchase more of all goods and services. The shift will be parallel to its initial position because the relative prices of the goods and services remain the same.

An Increase in Income Will Cause a Consumer's Budget Constraint