Answer to Question #53244 in Microeconomics for EMMA

Question #53244
If the price of the good represented on the Y axis increases by 15 percent, that represented on the X axis increases by 10 percent and nominal income increases by 20 percent. A The budget constraint will shift outwards and become flatter B The budget constraint will shift outwards and become steeper C The budget constraint will shift inwards and become flatter D The budget constraint will rotate and become steeper 20 If the price of the good represented on the Y axis decreases by 15 percent, that represented on the X axis decreases by 10 percent and nominal income decreases by 20 percent. A The budget constraint will shift outwards and become flatter B The budget constraint will shift outwards and become steeper C The budget constraint will shift inwards and become flatter D The budget constraint will shift inwards and become steeper
1
Expert's answer
2015-07-12T00:00:41-0400
If the price of the good represented on the Y axis increases by 15 percent, that represented on the X axis increases by 10 percent and nominal income increases by 20 percent.
B The budget constraint will shift outwards and become steeper

20. If the price of the good represented on the Y axis decreases by 15 percent, that represented on the X axis decreases by 10 percent and nominal income decreases by 20 percent.
C The budget constraint will shift inwards and become flatter

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