If Josh's income increases,then
A)His entire budget constraint will shift toward the origin.
B)His entire budget constraint will shift away from the origin.
C)His indifference curves will shift away from the origin.
D)One end of his budget constraint will move away from the origin.

Question

Quizplus · Accepted Answer

When Josh's income increases, his entire budget constraint shifts away from the origin because he can now afford more of both goods, assuming prices remain constant. This outward shift represents an increase in his purchasing power.

If Josh's Income Increases,then