What happens to the budget line when the relative price (MRT) of T rises?

Foundations Of Modern Trade Theory MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

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Foundations Of Modern Trade Theoryeconomics-mcqs › foundations-of-modern-trade-theory
Published
1 Jun 2019
Last updated
28 May 2026

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Explanation

An increase in the relative price of T causes the budget line to flatten, as the opportunity cost changes, making the slope less steep.

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