Answer:
first and last expressions are correct.
Answer:
Thomas' real income now is half that it was (nominal income decreased by half or prices doubled)
Step-by-step explanation:
If you graph both cases you will see that the shift is parallel between one case and the other.
Changes in relative prices (this is, if only one of the goods change prices), would cause a rotation in the budget line
Answer:
The answer is C 841.62.
I actually got 842.11, but C is the closest answer so that's gonna be the one.
Step-by-step explanation:
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