-The figure above shows Ronald's budget line. He has a weekly income of $20, which he spends on hotdogs and hamburgers. Now Ronald's income decreases to $10 per week and the price of a hotdog doubles. Ronald's budget line becomes ________ and ________.
A) flatter; shifts rightward
B) flatter; does not shift
C) steeper; shifts rightward
D) steeper; shifts leftward

Question

-The figure above shows Ronald's budget line. He has a weekly income of $20, which he spends on hotdogs and hamburgers. Now Ronald's income decreases to $10 per week and the price of a hotdog doubles. Ronald's budget line becomes ________ and ________.
A) flatter; shifts rightward 
B) flatter; does not shift 
C) steeper; shifts rightward 
D) steeper; shifts leftward

Quizplus · Accepted Answer

With a decrease in income and an increase in the price of hotdogs, Ronald's budget line becomes steeper and shifts leftward, indicating he can afford fewer goods overall.

-The Figure Above Shows Ronald's Budget Line