As a result of higher prices for cars and lower prices for homes, the budget line has shifted outward in recent years.

Question

Quizplus · Accepted Answer

The budget line represents the combination of goods a consumer can purchase with a given income. Higher prices for cars and lower prices for homes do not necessarily shift the budget line outward; they change the slope or position of the budget line, affecting the consumer's ability to trade off between the two goods. An outward shift would imply an increase in purchasing power or income, not a change in prices of specific goods.

As a Result of Higher Prices for Cars and Lower