-In the figure above, a decrease in the price of a bag of potato chips would result in the budget line
A) making a parallel shift toward point a.
B) making a parallel shift toward point c.
C) becoming flatter.
D) becoming steeper.

Question

-In the figure above, a decrease in the price of a bag of potato chips would result in the budget line
A) making a parallel shift toward point a. 
B) making a parallel shift toward point c. 
C) becoming flatter. 
D) becoming steeper.

Quizplus · Accepted Answer

A decrease in the price of a bag of potato chips would make the budget line flatter, as the consumer can now afford more bags of chips for the same amount of money, increasing the quantity of chips that can be purchased.

-In the Figure Above, a Decrease in the Price of a Bag