Refer to the following graph. If the price of bagels falls, the budget constraint in the graph will rotate:
A) out and become flatter.
B) out and have the same slope.
C) in and become flatter.
D) in and become steeper.

Question

Refer to the following graph. If the price of bagels falls, the budget constraint in the graph will rotate: 
A) out and become flatter. 
B) out and have the same slope. 
C) in and become flatter. 
D) in and become steeper.

Quizplus · Accepted Answer

The Answer of Refer to the following graph. If the price of bagels falls, the budget constraint in the graph will rotate: 
A) out and become flatter. 
B) out and have the same slope. 
C) in and become flatter. 
D) in and become steeper.

Refer to the Following Graph