-Inga's graph of her budget line has apples per week on the vertical axis and loaves of bread per week on the horizontal. A fall in the price of an apple shifts the
A) horizontal intercept leftward.
B) horizontal intercept rightward.
C) vertical intercept downward.
D) vertical intercept upward.

Question

-Inga's graph of her budget line has apples per week on the vertical axis and loaves of bread per week on the horizontal. A fall in the price of an apple shifts the
A) horizontal intercept leftward. 
B) horizontal intercept rightward. 
C) vertical intercept downward. 
D) vertical intercept upward.

Quizplus · Accepted Answer

A fall in the price of an apple allows Inga to buy more apples for the same amount of money, shifting the vertical intercept of the budget line upward, as she can now afford more apples if she spends all her budget on them.

-Inga's Graph of Her Budget Line Has Apples Per Week