If you consume hot dogs and hamburgers and your budget increases while the prices of hot dogs and hamburgers do not change,then your budget line

Question

Quizplus · Accepted Answer

If the prices of hot dogs and hamburgers do not change and your budget increases, then you can afford to consume more of both goods. This results in an outward shift of the budget line while the slope remains the same (assuming the prices of the goods are constant). Therefore, the correct choice is B.

If You Consume Hot Dogs and Hamburgers and Your Budget