Suppose good 1 is taken on the horizontal axis and good 2 on the vertical axis, then what happens to the budget line if the price of good 1 doubles and price of good 2 triples?
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2 marksMicroeconomicsBudget constraint and consumer equilibriumBudget set and budget lineModerateabout 1 min
UGC-NET 2023 Question 1: Budget constraint and consumer equilibrium
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Budget constraint and consumer equilibrium has come up 99 times in 7 exams since 2004.
What this question tests
This question is on Budget set and budget line, part of Budget constraint and consumer equilibrium in Microeconomics.
Which bundles a consumer can afford, the slope of the budget line, and how income and price changes shift it.
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