If good 1 is on the horizontal axis and good 2 is on the vertical axis, then an increase in the price of good 1 will not change the horizontal intercept of the budget line.

Question

Quizplus · Accepted Answer

An increase in the price of good 1 will decrease the quantity of good 1 that can be purchased if all income is spent on good 1, thus shifting the horizontal intercept of the budget line to the left.

If Good 1 Is on the Horizontal Axis and Good