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

Question

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

Quizplus · Accepted Answer

A shift in the budget line outward (to the right) typically indicates an increase in money income, allowing the consumer to purchase more of both goods.

-In the Above Figure, a Shift in the Budget Line