Emilio buys pizza for $10 and lemonade for $2. He has income of $100. His budget constraint

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Emilio buys pizza for $10 and lemonade for $2. He has income of $100. His budget constraint will experience a parallel outward shift if which of the following events occur?

a The price of pizza falls to $5, the price of lemonade falls to $1 and his income falls to $50.

b The price of pizza rises to $20, the price of lemonade rises to $4 and his income remains the same.

c The price of pizza falls to $8, the price of lemonade falls to $1 and his income rises to $120.

d The price of pizza rises to $20, the price of lemonade rises to $4 and his income rises to $400.

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Advanced Macroeconomics

ISBN: 9780415205504

3rd Edition

Authors: David Romer

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Question Posted: Nov 14, 2024 05:01 AM

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Emilio buys pizza for $10 and lemonade for $2. He has income of $100. His budget constraint

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Advanced Macroeconomics

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