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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» SOLUTION :Let good 1 is on x axis and good 2 is on y axis.a) When price of good 1 RISES, budget line will become steeper.b) When price of good 2 falls, it will be steeper.c) When MONEY income of thee consumer rises, then it will shift rightward. | |