-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) decrease in income.
C) rise in the price of a movie.
D) fall in the price of a movie.

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) decrease in income. 
C) rise in the price of a movie. 
D) fall in the price of a movie.

Quizplus · Accepted Answer

A rise in the price of a movie would cause the budget line to rotate inward, reducing the quantity of movies that can be purchased while keeping the quantity of books constant.

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