-In the figure above, an increase in the price of a bag of potato chips would result in the budget line
A) making a parallel shift toward point a.
B) making a parallel shift toward point c.
C) becoming flatter.
D) becoming steeper.

Question

-In the figure above, an increase in the price of a bag of potato chips would result in the budget line
A) making a parallel shift toward point a. 
B) making a parallel shift toward point c. 
C) becoming flatter. 
D) becoming steeper.

Quizplus · Accepted Answer

An increase in the price of a bag of potato chips would make the budget line steeper because the consumer can now afford fewer bags of chips for the same amount of money, reducing the slope of the budget line.

-In the Figure Above, an Increase in the Price of a Bag