Suppose that a consumer has a choice between hotdogs and video games. All of the following can lead to a rotation of the consumer's budget line except a(n)
A)increase in the price of hotdogs.
B)decrease in the price of hotdogs.
C)increase in the price of video games.
D)decrease in the price of video games.
E)increase in the consumer's income.

Question

Quizplus · Accepted Answer

An increase in the consumer's income shifts the budget line outward or inward without causing a rotation. Rotations occur due to changes in the relative prices of goods, not changes in income.

Suppose That a Consumer Has a Choice Between Hotdogs and Video