Increase in income of the consumer is the only cause that leads to a parallel shift of budget line to the right. State True or False.
A
True
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
False
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
Open in App
Solution
The correct option is B False Budget line shifts to the right (i) when income of consumer increases assuming price of two goods remains unchanged, and (ii) when there is proportionate fall in the prices of two goods, income of the consumer remaining unchanged.