A change in income changes ________ of the budget line.
A)the slope and y-intercept
B)the slope and x-intercept
C)the x- and y-intercepts but not the slope
D)only the slope
E)only the y-intercept

Question

Quizplus · Accepted Answer

A change in income shifts the budget line but does not change its slope since the slope is determined by the relative prices of the goods, which are unaffected by changes in income.

A Change in Income Changes ________ of the Budget Line