The following changes in a consumer's economic circumstances result in a steeper budget line with the vertical intercept unchanged.(Denote the good on the horizontal as good 1 and the good on the vertical as good 2.)
a.
A k percent decrease in the price of good 2 combined with a k percent decrease in income
b.
A k percent increase in the price of good 2 combined with a k percent decrease in income
c.
A k percent decrease in the price of good 2 combined with a k percent increase in income
d.
A k percent increase in the price of good 2 combined with a k percent increase in income.
e.
None of the above

Question

Quizplus · Accepted Answer

The Answer of The following changes in a consumer's economic circumstances result in a steeper budget line with the vertical intercept unchanged.(Denote the good on the horizontal as good 1 and the good on the vertical as good 2.)
a.
A k percent decrease in the price of good 2 combined with a k percent decrease in income
b.
A k percent increase in the price of good 2 combined with a k percent decrease in income
c.
A k percent decrease in the price of good 2 combined with a k percent increase in income
d.
A k percent increase in the price of good 2 combined with a k percent increase in income.
e.
None of the above

The Following Changes in a Consumer's Economic Circumstances Result in a Steeper