(Answered) the shift from budget line AB to budget line A’B’ can be explained bythe shift from budget line AB…

➤ How do simultaneous price and income changes move the budget line?
When prices and income change together, the effect depends on their pattern. Proportional changes in prices and income produce a parallel shift. Non-proportional price changes cause rotation. Mixed changes combine pivot and shift. Evaluate effective prices and real purchasing power to classify the movement.