6. What is likely to happen to the slope of the budget line of movie tickets...
6. What is likely to happen to the slope of the budget line of movie tickets when:
a. your income increases from $100 to $150 (4)
b. Price of the movie tickets changes from $20 to $25 a ticket
Homework Answers
Answer: 6.
a. If income increases from $100 to $150, the budget line will shift and there will be no change in the slope of budget line.
b. If price of movie ticket increases from $20 to $25 a ticket, the budget line will pivot inward and it becomes steeper. The slope increases as price increases. Here movie ticket is assumed to be on horizontal axis.
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