Bill consumes apples and bananas.Apples are measured on the vertical axis and bananas are measured on the horizontal axis.Bill's income doubles,the price of apples doubles,and the price of bananas triples.Bill's budget line
A)remains unchanged.
B)shifts rightward and the slope does not change.
C)shifts rightward and becomes steeper.
D)shifts rightward and becomes flatter.
E)becomes steeper.

Question

Quizplus · Accepted Answer

The budget line becomes steeper because the price of bananas increases more than the price of apples, altering the relative price ratio, even though Bill's income also doubles.

Bill Consumes Apples and Bananas