-In the above figure, Reggie's budget line rotates outward from BL₁ to BL₂. He initially consumes at point A. If his new consumption bundle is at point C, this implies that his demand curve for kiwi fruit

Question

-In the above figure, Reggie's budget line rotates outward from BL<sub>1</sub> to BL<sub>2</sub>. He initially consumes at point A. If his new consumption bundle is at point C, this implies that his demand curve for kiwi fruit A) has shifted. B) is a vertical line. C) slopes downward. D) is a horizontal line.

Quizplus · Accepted Answer

The outward rotation of the budget line indicates a change in price, and if Reggie moves from point A to point C, it suggests that he is consuming more kiwi fruit as the price decreases, which is consistent with a downward-sloping demand curve.

-In the Above Figure, Reggie's Budget Line Rotates Outward from BL1

-In the Above Figure, Reggie's Budget Line Rotates Outward from BL₁