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Robert spends his income on lattes and all other goods. Lattes cost $4 each. If his income increases from $400 to $500 and the price
Robert spends his income on lattes and all other goods. Lattes cost $4 each. If his income increases from $400 to $500 and the price of lattes increases to $5, which of the following are true? Assume that lattes are on the horizontal axis and all other goods are on the vertical axis. Choose one or more: A. Robert's budget set will shrink. B. Robert's budget set will increase. C. Robert would be able to purchase the same quantities of lattes even after the price increased. D. The budget line gets flatter
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