Increases in the price of the good measured on the horizontal axis will make the horizontal intercept ________ and make the budget line _.
A)larger in value; steeper
B)larger in value; flatter
C)smaller in value;
D)steeper smaller in value; flatter

Question

Quizplus · Accepted Answer

An increase in the price of the good on the horizontal axis reduces the quantity that can be purchased with a given budget, making the horizontal intercept smaller and the budget line steeper.

Increases in the Price of the Good Measured on the Horizontal