Suppose Tyrone spends his entire income on books and clothing.If the prices of both books and clothing fall by 10%,which of the following statements is TRUE?
A) Tyrone is not able to move to a new indifference curve.
B) The budget constraint shifts outward.
C) The budget constraint becomes flatter (the slope is smaller in absolute value) .
D) The budget constraint becomes steeper (the slope is larger in absolute value) .
Correct Answer:
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