What will happen to budget line when : (a) Price of good 1 in rises (b) Price of good 2 falls (c) Money income of the consumer rises

What will happen to budget line when : (a) Price of good 1 in rises (

1.	What will happen to budget line when : (a) Price of good 1 in rises (b) Price of good 2 falls (c) Money income of the consumer rises
Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :Let good 1 is on x axis and good <a href="https://interviewquestions.tuteehub.com/tag/2-283658" style="font-weight:bold;" target="_blank" title="Click to know more about 2">2</a> is on y axis.a) When price of good 1 <a href="https://interviewquestions.tuteehub.com/tag/rises-1189694" style="font-weight:bold;" target="_blank" title="Click to know more about RISES">RISES</a>, budget line will become steeper.b) When price of good 2 falls, it will be steeper.c) When <a href="https://interviewquestions.tuteehub.com/tag/money-25502" style="font-weight:bold;" target="_blank" title="Click to know more about MONEY">MONEY</a> income of thee consumer rises, then it will shift rightward.</body></html>