When a consumer's budget increases,the budget line
A) becomes steeper.
B) becomes flatter.
C) shifts outward.
D) shifts inward.
E) does not change.

Question

Quizplus · Accepted Answer

When a consumer's budget increases, their purchasing power increases and they are able to buy more goods and services at the given prices. This results in the budget line shifting outward, indicating that the consumer now has more options for spending their income.

When a Consumer's Budget Increases,the Budget Line