If the price of the good measured on the horizontal axis increases,the budget line
A)becomes steeper.
B)shifts leftward and becomes steeper.
C)shifts leftward and parallel to the original budget line.
D)shifts rightward and parallel to the original budget line.
E)becomes flatter.

Question

Quizplus · Accepted Answer

When the price of a good (on the horizontal axis) increases, the budget line becomes steeper because the consumer can now afford less of that good for any given quantity of the other good, reflecting a higher relative price.

If the Price of the Good Measured on the Horizontal