What Would Happen to the Budget Line If Income as Well

question 225

Multiple Choice

What would happen to the budget line if income as well as prices of both goods increase by the same percentage?

• A)A rightward parallel shift in the budget line
• B)A leftward parallel shift in the budget line
• C)A rightward shift in the budget line
• D)No shift in the budget line

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Definitions:

Transduction

The process through which a physical stimulus is converted into a signal within the nervous system.

Muscles

Tissues in the body that have the ability to contract, enabling movement of various parts of the body.

Proximal Stimulus

The stimulus registered by the sensory receptors, for example, the pattern of light that hits the retina.

Immune System

The body's defense mechanism against pathogens, comprising various organs, tissues, and cells.