Consider the slope of the budget line AB in Fig XXXXXXXXXXWhat is the effect on AB of (a) a reduction in the individual’s initial holding of firm j ( j  a, b) shares; (b) an increase in the market...

Consider the slope of the budget line AB in Fig. 21.5. What is the effect on AB of (a) a reduction in the individual’s initial holding of firm j ( j  a, b) shares; (b) an increase in the market price of firm j; (c) an increase in the profits of firm 1 in state s (s  1, 2)?