Use the following to answer question:
-(Figure and Table: The Budget Line)Use Figure and Table: The Budget Line.An increase in income would:
A)rotate the budget line,changing the intercept on the horizontal axis.
B)shift the budget line to the left.
C)rotate the budget line,changing the intercept on the vertical axis.
D)shift the budget line to the right.

Question

Use the following to answer question: 
-(Figure and Table: The Budget Line)Use Figure and Table: The Budget Line.An increase in income would:
A)rotate the budget line,changing the intercept on the horizontal axis. 
B)shift the budget line to the left. 
C)rotate the budget line,changing the intercept on the vertical axis. 
D)shift the budget line to the right.

Quizplus · Accepted Answer

An increase in income would shift the budget line to the right, as the consumer would have more money to spend, increasing the maximum quantity of both goods they can purchase.

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