In a graph of choice sets, a price change affects the ratio but does not affect the budget line.

Name: In a graph of choice sets, a price change affects the ratio but does not affect the budget line.
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Question

Quizplus · Accepted Answer

A price change affects the slope of the budget line in a graph of choice sets, as the budget line represents the combination of goods that can be purchased with a given budget at specific prices.

In a Graph of Choice Sets, a Price Change Affects