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

Question

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the entire budget line will shift to the right.

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the budget line will rotate to the left down the vertical axis with the slope changing from 1/2 to 1/4 (in absolute values).

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the entire budget line shifts to the left with its slope changing from 1/2 to 1/4 (in absolute values).

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the budget line will rotate to the left across the horizontal axis, slope remaining constant.

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the budget line will rotate to the right down the horizontal axis with the slope changing from 1/4 to 1/2 (in absolute values).

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Assume the quantity of good X is measured on the horizontal axis and the quantit...

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