Which of the following describes what happens to a consumer's budget line if that consumer's budget increases?
A) The budget line becomes more horizontal.
B) The budget line becomes steeper.
C) The budget line shifts further away from the origin of the graph.
D) The budget line shifts closer to the origin of the graph.
E) The budget line does not change.

Question

Quizplus · Accepted Answer

When a consumer's budget increases, the budget line shifts further away from the origin of the graph, indicating that the consumer can now afford a combination of goods and services that were previously out of reach. This shift represents an increase in purchasing power.

Which of the Following Describes What Happens to a Consumer's