Exhibit 6-27 Consider Exhibit 6-27.The rotation of the budget line from AB to AC represents a(n)
A)increase in the price of clams
B)increase in the price of mussels
C)decrease in the price of clams
D)decrease in the price of mussels
E)increase in the amount the consumer can spend

Question

Exhibit 6-27  Consider Exhibit 6-27.The rotation of the budget line from AB to AC represents a(n)
A)increase in the price of clams 
B)increase in the price of mussels 
C)decrease in the price of clams 
D)decrease in the price of mussels 
E)increase in the amount the consumer can spend

Quizplus · Accepted Answer

The rotation of the budget line from AB to AC represents a decrease in the price of clams, as the consumer can now purchase more clams for the same amount of money.