Other things equal,if there is a price increase of a good measured on the vertical axis,the budget constraint will shift outward.

Name: Other things equal,if there is a price increase of a good measured on the vertical axis,the budget constraint will shift outward.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

An increase in the price of a good would lead to a decrease in the quantity of that good that can be purchased with a given budget. This would cause a rotation of the budget constraint, not a shift outward.

Other Things Equal,if There Is a Price Increase of a Good