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.

Question

Quizplus · Accepted Answer

When Josh's income increases, his budget constraint will shift outward because he can now afford to purchase more goods and services at any given price level. Therefore, the best choice is B, as it accurately reflects the effect of a higher income on his budget constraint. Option A is incorrect because Josh's budget constraint would not shift towards the origin, as this would imply a decrease in his income, making it more difficult for him to purchase goods and services. Option C is also incorrect because the shift in Josh's budget constraint would not affect his indifference curves; rather, it would influence his ability to purchase more goods and services.

If Josh's Income Increases,then