Martha consumes cake and muffins. If Martha's income doubles and the prices of cake and muffins also double, which of the following events occur?
Martha's budget line

Question

Martha consumes cake and muffins. If Martha's income doubles and the prices of cake and muffins also double, which of the following events occur? 
 Martha's budget line

Accepted Answer

remains unchanged.

Answer

shifts rightward but the slope does not change.

Answer

shifts rightward and becomes flatter.

Answer

shifts leftward but the slope does not change.

Answer

shifts rightward and becomes steeper.

Crowdly

Martha consumes cake and muffins. If Martha's income doubles and the prices of c...

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