If money income triples and the price of all goods doubles,then the:
A) budget line remains unchanged.
B) consumer is worse off due to inflation.
C) consumer will buy more of normal goods.
D) budget line will shift in.

Question

Quizplus · Accepted Answer

When money income triples and the price of all goods doubles, the consumer effectively has more purchasing power. This means they can afford to buy more of normal goods, which are goods whose demand increases as the consumer's income increases.

If Money Income Triples and the Price of All Goods