How would that budget line be affected if the price of both goods fell?
CA Foundation · Business Economics · MTP · September 2025
How would that budget line be affected if the price of both goods fell?
Suggested Answer and Working Notes:
Correct Answer: Option (C)
C. The new budget line will have the same slope as the original so long as the prices of both goods change in the same proportion
Topics: Theory of Demand and Supply
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