Use graphs where necessary and EXPLAIN whether the following statements are true or false: (60 (b) (C) (d) (e) If all prices are doubled and money income is left the same, the budget constraint does not change because relative prices do not change. There are two goods. You know how much of good 1 a consumer can afford if she spends all of her income on good 1. If you knew the ratio of the prices of the two goods, then you could draw the consumer's budget line without any more information. Suppose there are two goods, the prices of both goods are positive, and a consumer's income is also positive. If the consumer's income doubles and the price of both goods triple, the slope of the consumer's budget line does not change but the budget line shifts inward toward the origin. If good 1 is measured on the horizontal axis and good 2 is measured on the vertical axis, and if the price of good 1 is p1 and the price of good 2 is p2; then the slope of the budget line is pz/pl. If Good 1 is on the horizontal axis and Good 2 is on the vertical axis, then an increase in the price of Good 1 will not change the horizontal intercept of the budget line