The lower the price of the good measured on the vertical axis, other thing remaining the same, the flatter the budget line.

Name: The lower the price of the good measured on the vertical axis, other thing remaining the same, the flatter the budget line.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The slope of the budget line is determined by the relative prices of the two goods. A change in the price of the good on the vertical axis will change the slope, but not necessarily make it flatter.

The Lower the Price of the Good Measured on the Vertical