An Increase in an Individual's Income Without Changing Relative Prices

question 1

Multiple Choice

An increase in an individual's income without changing relative prices will

• A)rotate the budget constraint about the X-axis.
• B)shift the indifference curves outward.
• C)shift the budget constraint outward in a parallel way.
• D)rotate the budget constraint about the Y axis.

---

Definitions:

Reality

The state of things as they actually exist, outside of perception or interpretation.

Filter Bubble

A situation in which an individual's exposure to information on the internet is limited to ideas and perspectives that align with their own, due to algorithmic personalization by search engines and social media platforms.

Social Media

Digital platforms and technologies that enable users to create and share content or participate in social networking, facilitating communication and information sharing globally.

Echo Chambers

Environments, especially in social media or discussion forums, where beliefs are amplified or reinforced by communication within a closed system, limiting exposure to diverse viewpoints.