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Managerial Economics · Quiz 1 · 15 Mar 2026 · January 2026 term

Question 17: If income is halved keeping the original prices unchanged

Question 17

+1 markOne correct option

Consider two goods, coconut and fish with prices Pc = 20 and Pf = 10. Robin has an income I= 1000 and he consumes only these two goods. With the help of the plot of his budget line taking fish on the Y-axis.
Based on the above data, answer the given subquestions.

If income is halved keeping the original prices unchanged

  1. A

    Slope remains same and both intercepts are doubled

  2. B

    Slope remains same and both intercepts are halved

  3. C

    Slope changes and both intercepts are doubled

  4. D

    Slope changes and both intercepts remain same

Show answer

Correct answer

  • B

    Slope remains same and both intercepts are halved

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Question 17 of 24 in the IIT Madras BS Managerial Economics (Managerial Economics) Quiz 1 paper sat on 15 Mar 2026, in the January 2026 term (Managerial Economics 15 Mar 26). It carries 1 mark.

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