Economics · Consumer Behaviour
If there is a decrease in a consumer's income while prices remain constant, what is the effect on the budget line?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It shifts parallel to the right
- 2It shifts parallel to the left✓
- 3The slope of the line changes
- 4There is no change in the budget line
Correct answer
It shifts parallel to the left
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