Other things equal, an increase in a consumer's money income shifts the individual's budget line rightward because he/she would like to buy more of both products. shifts the individual's budget line rightward because he/she can now afford more of both products. causes the consumer to choose a different combination of goods along a given budget line. increases the amount of utility a consumer receives from a given quantity of a good.
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However, the reason for this is not necessarily because the consumer would like to buy more of both products. The shift is due to the fact that the consumer can now afford more of both products. Show more…
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