Assuming no change in income, if the prices of the two goods the consumer buys increase, the
A) budget line shifts closer to the origin.
B) budget line shifts to the right.
C) indifference curve shifts to the right.
D) budget line rotates to the right.

Question

Quizplus · Accepted Answer

When the prices of goods increase without a change in income, the consumer's purchasing power decreases, causing the budget line to shift closer to the origin. This reflects the reduced number of goods the consumer can afford.

Assuming No Change in Income, If the Prices of the Two