-In the above figure, the budget line would rotate in the direction indicated as a result of a
A) rise in the price of a book.
B) fall in the price of a book.
C) rise in the price of a movie.
D) decrease in income.

Question

-In the above figure, the budget line would rotate in the direction indicated as a result of a
A) rise in the price of a book. 
B) fall in the price of a book. 
C) rise in the price of a movie. 
D) decrease in income.

Quizplus · Accepted Answer

A fall in the price of a book would allow the consumer to purchase more books for the same amount of money, causing the budget line to rotate outward.

-In the Above Figure, the Budget Line Would Rotate in the Direction