2. If the price of good X (measured on the horizontal axis of a budget line...

 

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2. If the price of good X (measured on the horizontal axis of a budget line diagram) increases at e same time that the price of good Y (measured on the vertical axis) decreases, the budget line: - O will rotate about its original point of intersection with the horizontal axis O could become either steeper or flatter, depending on the sizes of the price changes O will become steeper will shift outward, but not in a parallel fashion O will become flatter 2. If the price of good X (measured on the horizontal axis of a budget line diagram) increases at e same time that the price of good Y (measured on the vertical axis) decreases, the budget line: - O will rotate about its original point of intersection with the horizontal axis O could become either steeper or flatter, depending on the sizes of the price changes O will become steeper will shift outward, but not in a parallel fashion O will become flatter