What happens to a consumer's budget constraint if the amount of money he or she has to spend increases?
A) It shifts out.
B) It shifts in.
C) It rotates to a new intersection on the vertical axis but not on the horizontal axis.
D) It rotates to a new intersection on the horizontal axis but not on the vertical axis.

Question

Quizplus · Accepted Answer

When a consumer's budget increases, their budget constraint shifts outward, indicating they can now afford a combination of goods and services that were previously out of their reach. This outward shift does not imply a change in the prices of goods, just an increase in purchasing power.

What Happens to a Consumer's Budget Constraint If the Amount