-The above figure shows Jane's budget line and two of her indifference curves. Which of the following happens to Jane's budget line if there were an increase in her monthly dining-out budget?
A) It would bend toward the origin, becoming more convex.
B) It would bend away from the origin, becoming more concave.
C) It would shift rightward and not change its slope.
D) It would shift leftward and not change its slope.

Question

-The above figure shows Jane's budget line and two of her indifference curves. Which of the following happens to Jane's budget line if there were an increase in her monthly dining-out budget?
A) It would bend toward the origin, becoming more convex. 
B) It would bend away from the origin, becoming more concave. 
C) It would shift rightward and not change its slope. 
D) It would shift leftward and not change its slope.

Quizplus · Accepted Answer

An increase in Jane's monthly dining-out budget would result in a rightward shift of her budget line, indicating she can afford more dining-out options, without changing the slope, as the relative prices remain constant.

-The Above Figure Shows Jane's Budget Line and Two of Her