If the prices of both goods increase by the same percent, the budget line will
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1 mark, −0.33MicroeconomicsBudget constraint and consumer equilibriumBudget set and budget lineEasyabout 1 min
UoH 2014 Question 2: 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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