An outward shift of the budget constraint will cause a consumer to buy
A)fewer normal goods and more inferior goods.
B)more normal goods and fewer inferior goods.
C)more normal goods and more inferior goods.
D)fewer normal goods and fewer inferior goods.

Question

Quizplus · Accepted Answer

An outward shift of the budget constraint means an increase in income or a decrease in prices of goods. When there is an increase in income, consumers tend to buy more normal goods and fewer inferior goods as they can afford better quality goods. Hence, option B is the correct answer.

An Outward Shift of the Budget Constraint Will Cause a Consumer