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adnan_buljic adnan_buljic
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Assume the quantity of good X is measured on the horizontal axis and the quantity of good Y on the vertical axis. Initial prices are PX = $5 and PY = $10. The consumer's income is $100. If PY increases to $20, then

▸ the budget line will rotate toward the origin with the slope changing from 1/2 to 1/4 (in absolute values).

▸ the entire budget line shifts parallel toward the origin.

▸ the budget line will rotate away from the origin with the slope changing from 1/4 to 1/2 (in absolute values).

▸ the budget line will rotate toward the origin, slope remaining constant.

▸ the entire budget line shifts parallel away from the origin.
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Microeconomics

Microeconomics


Edition: 17th
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hadu582hadu582
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adnan_buljic Author
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A year ago
this is exactly what I needed
choih94
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This calls for a celebration Person Raising Both Hands in Celebration
avance37
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Thanks for your help!!
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