Assume that a consumer purchases only two products and there is a decrease in the consumer's income. The prices of the two products stay constant. The decrease in income will result in
A)a shift of the budget line inward to the left.
B)a shift of the budget line outward to the right.
C)a decrease in the slope of the budget line.
D)an increase in the slope of the budget line.

Question

Quizplus · Accepted Answer

A decrease in income, with constant prices, reduces the quantity of goods a consumer can afford, shifting the budget line inward to the left.

Assume That a Consumer Purchases Only Two Products and There