A decrease in the price of a good causes
A)a change in the slope of the budget line.
B)a decrease in the consumption of that good.
C)a leftward shift of the demand curve for that good.
D)a parallel leftward shift of the budget line.

Question

Quizplus · Accepted Answer

A decrease in the price of a good changes the slope of the budget line because it alters the rate at which the consumer can trade off that good against others, without affecting the consumer's income or the prices of other goods.

A Decrease in the Price of a Good Causes