Exhibit 6-30 Consider Exhibit 6-30.Assume that you have $600 to spend on books and compact disks.What happens if the price of books falls to $5?
A)The budget line shifts inward along the horizontal axis.
B)The budget line shifts inward along the vertical axis.
C)The budget line does not move.
D)The budget line shifts outward along the vertical axis.
E)The budget line shifts outward along the horizontal axis.

Question

Exhibit 6-30  Consider Exhibit 6-30.Assume that you have $600 to spend on books and compact disks.What happens if the price of books falls to $5?
A)The budget line shifts inward along the horizontal axis. 
B)The budget line shifts inward along the vertical axis. 
C)The budget line does not move. 
D)The budget line shifts outward along the vertical axis. 
E)The budget line shifts outward along the horizontal axis.

Quizplus · Accepted Answer

The Answer of Exhibit 6-30  Consider Exhibit 6-30.Assume that you have $600 to spend on books and compact disks.What happens if the price of books falls to $5?
A)The budget line shifts inward along the horizontal axis. 
B)The budget line shifts inward along the vertical axis. 
C)The budget line does not move. 
D)The budget line shifts outward along the vertical axis. 
E)The budget line shifts outward along the horizontal axis.