Answer the following statement(s) true (T) or false (F)

1. A doubling of all prices has the same effect on the budget line as reducing income by half.
2. If the consumer's income doubles, then his optimal purchases of all goods will double.
3. If the consumer's income and all prices simultaneously triple, then his optimum will not change.
4. The slope of the budget line always equals the consumer's marginal value.
5. The budget line illustrates the consumer's opportunities and the indifference curve illustrates the consumer's preference.


1. True
2. False
3. True
4. False
5. True

Economics

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