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.