If a Consumer Spent Their Entire Income on Chips and Cola

question 56

Multiple Choice

If a consumer spent their entire income on chips and cola, what would happen if the consumer's income were to double and the prices of chips and cola were also to double?

• A) The consumer's budget line would remain unchanged.
• B) The consumer's budget line would shift outward, but remain parallel to the original budget line.
• C) The consumer's budget line would shift inward, but remain parallel to the original budget line.
• D) The consumer's budget line would shift in an unpredictable way.