What would happen to the budget line when the price of tennis shoes decreases if tennis shoes are measured on the horizontal axis?
A)It would shift to the left.
B)It would rotate outward along the horizontal axis.
C)It would rotate inward along the horizontal axis.
D)It would rotate outward along the vertical axis.
E)It would rotate inward along the vertical axis.

Question

Quizplus · Accepted Answer

When the price of tennis shoes decreases and they are measured on the horizontal axis, the consumer's purchasing power increases. This means that the budget line will rotate outward along the horizontal axis, allowing the consumer to buy more tennis shoes or other goods while spending the same amount of money.

What Would Happen to the Budget Line When the Price