Suppose Jill's consumption bundle is made up of 2 goods, apples and bottles of juice. If the price of an apple increases, then Jill's budget line would
A) not change.
B) shift towards the origin on the apples axis only.
C) shift towards the origin on both the apples and bottles of juice axes.
D) shift away from the origin on the bottles of juice axis only.

Question

Quizplus · Accepted Answer

When the price of apples increases, Jill can afford fewer apples with the same budget, causing the budget line to pivot inward on the apples axis while the intercept on the bottles of juice axis remains unchanged.

Suppose Jill's Consumption Bundle Is Made Up of 2 Goods