Roger spends all of his money on racquetballs and food.What would happen to Roger's budget line if his income increased by 10 percent,holding prices constant?

Question

Quizplus · Accepted Answer

An increase in income would enable Roger to purchase more racquetballs and food, thus causing his budget line to shift outward. Holding prices constant means that the slope of the budget line remains the same, but the intercepts on both the axes increase proportionately with the increase in income.

Roger Spends All of His Money on Racquetballs and Food