Hannah has $30 to spend on chips and salsa each month. If the price of chips stays the same while the price of salsa increases, her budget line will
A) shift outward.
B) shift inward.
C) pivot outward.
D) pivot inward.

Question

Quizplus · Accepted Answer

The budget line will pivot inward because the increase in the price of salsa, while the price of chips remains constant, means that Hannah can now afford less salsa for the same amount of money, changing the slope of the budget line without shifting its position on the axis representing chips.

Hannah Has $30 to Spend on Chips and Salsa Each