(Figure: Good Y and Good X) Suppose the budget constraint shifted from constraint 2 to constraint 1. What couldhave caused this change?Quantity ofgood Y18161412108642Budget constraint 20Budget constraint 12 4 6 8 10 12 14 16 18 20Quantity of good Xa decrease in the price of good X relative to that of good Yan increase in the price of good X and no change in the price of Ya decrease in incomea decrease in income and an increase in the price of good X relative to that of good Y

A budget constraint line shows the combination of two goods affordable to the consumer. General…

(Figure: Good Y and Good X) Suppose the budget constraint shifted from constraint 2 to constraint 1. What could have caused this change? Quantity of good Y 0000 18- 16 14 12 10 8 6 4 2 0 Budget constraint 2 Budget constraint 1 Quantity of good X 2 4 6 8 10 12 14 16 18 20 a decrease in the price of good X relative to that of good Y an increase in the price of good X and no change in the price of Y a decrease in income a decrease in income and an increase in the price of good X relative to that of good Y

(Figure: Good Y and Good X) Suppose the budget constraint shifted from constraint 2 to constraint 1. What could have caused this change? Quantity of good Y 0000 18- 16 14 12 10 8 6 4 2 0 Budget constraint 2 Budget constraint 1 Quantity of good X 2 4 6 8 10 12 14 16 18 20 a decrease in the price of good X relative to that of good Y an increase in the price of good X and no change in the price of Y a decrease in income a decrease in income and an increase in the price of good X relative to that of good Y

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 11RQ: As a general rule, is it safe to assume that a change in the price of a good will always have its...

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