-An increase in a consumer's income creates a
A) rightward parallel shift of the budget line.
B) leftward parallel shift of the budget line.
C) rightward rotation of the budget line, so that the budget line becomes steeper.
D) leftward rotation of the budget line, so that the budget line becomes steeper.

Question

-An increase in a consumer's income creates a
A) rightward parallel shift of the budget line. 
B) leftward parallel shift of the budget line. 
C) rightward rotation of the budget line, so that the budget line becomes steeper. 
D) leftward rotation of the budget line, so that the budget line becomes steeper.

Quizplus · Accepted Answer

An increase in a consumer's income allows them to purchase more of both goods, shifting the budget line rightward in a parallel manner, as the prices of goods remain unchanged.

-An Increase in a Consumer's Income Creates a