All other things equal, if the prices of the two goods the consumer buys decrease, 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 decrease, the consumer can afford more of those goods with the same budget, causing the budget line to shift to the right, indicating an increase in purchasing power.

All Other Things Equal, If the Prices of the Two