Jill has income m and consumes good x and good y that have initial prices p x and p y . Suppose that both prices
double and income triples. On a graph showing the budget line with good x on the horizontal axis and good y on the vertical axis,

Question

Jill has income m and consumes good x and good y that have initial prices p x  and p y . Suppose that both prices 
 double and income triples. On a graph showing the budget line with good x on the horizontal axis and good y on the vertical axis,

Accepted Answer

None of the above is correct.

Answer

the new budget line becomes flatter and shifts further from the origin.

Answer

the new budget line becomes steeper and shifts closer to the origin.

Answer

the new budget line is parallel to the old budget line and lies below it.

Answer

the new budget line becomes flatter and shifts closer to the origin.

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Jill has income m and consumes good x and good y that have initial prices p x a...

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