Question 1
Carlos can buy either sushi or eggrolls. If the prices of sushi and eggrolls triple and so does Carlos's money income, we can deduce that Carlos's budget constraint will
◦ shift in but remain parallel to the old one.
◦ shift out but remain parallel to the old one.
◦ swivel in so that the slope of the budget constraint is tripled.
◦ remain unchanged.
Question 2
Carlos can buy either sushi or eggrolls. If the prices of sushi and eggrolls triple and Carlos's money income doubles, we can deduce that Carlos's budget constraint will
◦ shift in but remain parallel to the old one.
◦ shift out but remain parallel to the old one.
◦ swivel in so that the slope of the budget constraint is doubled.
◦ remain unchanged.
Gasoline prices
Mary Mattingly, Triple Island.
Oil supply and prices affect the economies of nations
Natural Resource Prices, 1850–2010
Prices in Japan before and after Opening to Trade
Sushi