Which of the following could change a consumer's budget line?
A)a change in utility
B)an increase in the availability of substitute goods
C)additional responsibilities taken on by the consumer
D)a change in the price of one or more goods
E)a reduction in the level of technical inefficiency in the market

Question

Quizplus · Accepted Answer

A change in the price of one or more goods would directly affect the budget line, since it represents the different combinations of goods that can be purchased with a given income at given prices. As prices change, the slope and position of the budget line would be modified, shifting the feasible options for the consumer. The other options (A, B, C, E) could affect the consumer's preferences, opportunities, or external conditions, but not the budget line itself.

Which of the Following Could Change a Consumer's Budget Line