A decrease in the prices of two products that a consumer buys out of a constant budget would cause the consumer's
A)indifference curves to shift outward from the origin.
B)indifference curves to shift inward to the origin.
C)budget line to shift outward from the origin.
D)budget line to shift inward to the origin.

Question

Quizplus · Accepted Answer

When the prices of products decrease, the consumer can afford more of these products with the same budget, causing the budget line to shift outward from the origin. This represents an increase in the consumer's purchasing power.

A Decrease in the Prices of Two Products That a Consumer