As the price of a good increases, holding the consumer's income and the price of the other good constant, the budget line will:
A)shift inward toward the origin.
B)shift outward away from the origin.
C)rotate the budget line inward toward the origin.
D)rotate the budget line outward away from the origin.

Question

Quizplus · Accepted Answer

When the price of a good increases, holding the consumer's income and the price of the other good constant, the budget line rotates inward toward the origin. This is because the consumer can now afford less of the good that has become more expensive, assuming their income and the price of the other good remain unchanged.

As the Price of a Good Increases, Holding the Consumer's