-The figure above shows Ilene's budget line. If the price of a can of cat food rises, her budget line rotates so that the vertical intercept is
A) unchanged, but the horizontal intercept is closer to the origin.
B) unchanged, but the horizontal intercept is farther away from the origin.
C) farther away from the origin, but the horizontal intercept is closer to the origin.
D) closer to the origin, but the horizontal intercept is farther away from the origin.

Question

-The figure above shows Ilene's budget line. If the price of a can of cat food rises, her budget line rotates so that the vertical intercept is
A) unchanged, but the horizontal intercept is closer to the origin. 
B) unchanged, but the horizontal intercept is farther away from the origin. 
C) farther away from the origin, but the horizontal intercept is closer to the origin. 
D) closer to the origin, but the horizontal intercept is farther away from the origin.

Quizplus · Accepted Answer

When the price of a can of cat food rises, Ilene can afford fewer cans with the same budget, so the horizontal intercept moves closer to the origin, while the vertical intercept remains unchanged.

-The Figure Above Shows Ilene's Budget Line