Problem
1. If the consumer has a positive marginal utility for each of two goods, why will the consumer always choose a basket on the budget line?
2. How will a change in income affect the location of the budget line?
3. How will an increase in the price of one of the goods purchased by a consumer affect the location of the budget line?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.