If income decreases,then:
A) the budget line remains the same.
B) the vertical intercept of the budget line shifts downward.
C) the horizontal intercept of the budget line shifts upward.
D) the slope of the budget line becomes steeper.

Question

Quizplus · Accepted Answer

A decrease in income would result in a decrease in the vertical intercept (the amount of income available to spend) of the budget line, shifting it downward.

If Income Decreases,then