Mohamed can buy either pizza or soda. If the price of pizza and soda doublest and so does Mohamed's money income for that month. We can deduce that Mohamed's jbudget constraint for that month will: DO Remain unchanged. 6. Shift in but remain parallel to the old one. c. Shift out but remain parallel to the old one. d. Tilt in so that the slope of the budget constraint is doubled.

Mohamed can buy either pizza or soda. If the price of pizza and soda doublest and so does Mohamed's money income for that month. We can deduce that Mohamed's jbudget constraint for that month will: DO Remain unchanged. 6. Shift in but remain parallel to the old one. c. Shift out but remain parallel to the old one. d. Tilt in so that the slope of the budget constraint is doubled.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 12RQ: Why does a change in income cause a parallel shift in the budget constraint?

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Why does a change in income cause a parallel shift in the budget constraint?
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