If the price of the good measured on the vertical axis increases, the budget line:
A) becomes flatter.
B) becomes steeper.
C) shifts rightward and parallel to the original budget line.
D) shifts leftward and becomes steeper.
E) shifts leftward and parallel to the original budget line.
A budget line is a downward sloping line that depicts an inverse relationship between the two products/services that a consumer can purchase by spending its entire income given the product/service price.
Answer and Explanation:
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fromChapter 1 / Lesson 6
Learn what budget constraint is and view examples. Understand how to use the budget constraint formula and how to represent a budget constraint using a graph.