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3. Consider the following budget constraint for two goods, X and Y, where X costs $10, Y costs $5, and income is $100: 10X +
3. Consider the following budget constraint for two goods, X and Y, where X costs $10, Y costs $5, and income is $100:
10X + 5Y 100.
If income changes from $100 to $150, how would the budget constraint change graphically (with X on the x-axis and Y on the y-axis)?
a. Parallel shift to the right.
b. Steeper with a smaller set of attainable choices.
c. Flatter with a smaller set of attainable choices.
d. Steeper with a larger set of attainable choices.
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