-In the above figure, if the price of pizza falls, the budget line
A) rotates outward and becomes steeper.
B) shifts leftward and its slope does not change.
C) shifts rightward and its slope does not change.
D) rotates inward and becomes flatter.

Question

-In the above figure, if the price of pizza falls, the budget line
A) rotates outward and becomes steeper. 
B) shifts leftward and its slope does not change. 
C) shifts rightward and its slope does not change. 
D) rotates inward and becomes flatter.

Quizplus · Accepted Answer

When the price of pizza falls, the budget line rotates outward from the pizza axis, becoming steeper, as more pizza can be purchased with the same budget.

-In the Above Figure, If the Price of Pizza Falls