Question: 5- (M pts) Consider the consumer's problem with two goods, good X and good Y. is it possible that the budget line of the consumer,

5- (M pts) Consider the consumer's problem with two goods, good X and good Y. is it possible that the budget line of the consumer, given by th ll-\"Iii\" pxX + Pry = i shifts to the right and parallei to its original position in (X . 1') plane while the income (1') remains constant? Provide an analytical explanation for your response. (Hint: the budget iine shis to the right and paraiiei to its originai position when the income i rises and prices constant. This question asks if the prices can change in a certain way that the budget iine sh [its as if income had increased.)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
