-In the above figure, the budget line would rotate in the direction indicated as a result of a
A) decrease in income.
B) rise in the price of a movie.
C) fall in the price of a movie.
D) rise in the price of a book.

Question

-In the above figure, the budget line would rotate in the direction indicated as a result of a
A) decrease in income. 
B) rise in the price of a movie. 
C) fall in the price of a movie. 
D) rise in the price of a book.

Quizplus · Accepted Answer

A rise in the price of a movie would cause the budget line to rotate inward from the movie axis, as it would decrease the quantity of movies that can be purchased for a given amount of money, assuming income and the price of books remain constant.

-In the Above Figure, the Budget Line Would Rotate in the Direction