If the slope of the budget line changes,there must have been
A) a change in the consumer's preferences.
B) an increase in the consumer's income.
C) a change in the price of at least one good.
D) a change in the price of both goods.
E) None of these could cause a change in the slope of the budget line.

Question

Quizplus · Accepted Answer

The slope of the budget line represents the rate at which one good can be substituted for another based on their prices. A change in the price of at least one good alters this rate, thus changing the slope of the budget line. Changes in consumer preferences or income affect the position but not necessarily the slope of the budget line.

If the Slope of the Budget Line Changes,there Must Have