Use the following to answer question:
-(Figure and Table: The Budget Line)Use Figure and Table: The Budget Line.A decrease 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.A decrease 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

A decrease in income would lead to a decrease in the budget line shift to the left. This is because the consumer would have less money to spend on goods and services, resulting in a decrease in the maximum quantity of goods they can afford at any given price.

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