-If a budget line rotates inward and becomes steeper, then the
A) consumer's budget increased.
B) price of one of the goods increased.
C) price of one of the goods decreased.
D) price of both of the goods must have decreased.
E) consumer's budget decreased.

Question

-If a budget line rotates inward and becomes steeper, then the
A) consumer's budget increased. 
B) price of one of the goods increased. 
C) price of one of the goods decreased. 
D) price of both of the goods must have decreased. 
E) consumer's budget decreased.

Quizplus · Accepted Answer

When a budget line rotates inward and becomes steeper, it indicates that the price of one of the goods on one of the axes has increased, making it more expensive relative to the other good. This change alters the slope of the budget line, reflecting the new price ratio between the two goods.

-If a Budget Line Rotates Inward and Becomes Steeper, Then