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

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Emilio buys pizza for $10 and soda 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 soda falls to $1, and his income falls to $50.

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

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

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

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Principles Of Microeconomics

ISBN: 9781305081673

7th Edition

Authors: N Gregory Mankiw

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Question Posted: Nov 02, 2024 05:01 AM

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

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Principles Of Microeconomics

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