Suppose that the price of good x doubles, and the price of good y is cut in half, while income remains constant.

1. Suppose that the price of good x doubles, and the price of good y is cut in half, while income remains constant. On a graph where the budget line is drawn with x on the horizontal axis and y on the vertical axis, the new budget line

a. is flatter than the old one and lies below it.

b. is flatter than the old one and lies above it.

c. crosses the old budget line.

d. is steeper than the old one and lies below it. e. is steeper than the old one and lies above it.

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