If the price of the good measured on the horizontal axis falls, a consumer's budget line
A) becomes flatter.
B) becomes steeper.
C) shifts rightward and its slope does not change.
D) shifts leftward and its slope does not change.

Question

Quizplus · Accepted Answer

When the price of the good on the horizontal axis falls, the consumer can buy more of that good for the same amount of money, making the budget line flatter as the slope (which is the price ratio) decreases.

If the Price of the Good Measured on the Horizontal