If the price of good X (measured on the horizontal axis of a budget line diagram)increases at the same time that the price of good Y (measured on the vertical axis)decreases,the budget line
A)will become flatter
B)will become steeper
C)could become either steeper or flatter,depending on the sizes of the price changes
D)will rotate about its original point of intersection with the horizontal axis
E)will shift outward,but not in a parallel fashion

Question

Quizplus · Accepted Answer

When the price of good X increases, the budget line becomes steeper because the consumer can afford less of good X for the same amount of good Y.

If the Price of Good X (Measured on the Horizontal