If the graph shown represents Heather's budget constraint,and the price of hairbands were to decrease,the slope of Heather's budget constraint would become:
A) flatter, reflecting the fact that hairbands are now relatively less expensive.
B) steeper, reflecting the fact that hairbands are now relatively more expensive.
C) flatter, reflecting the fact that earrings are now relatively less expensive.
D) steeper, reflecting the fact that earrings are now relatively more expensive.

Question

If the graph shown represents Heather's budget constraint,and the price of hairbands were to decrease,the slope of Heather's budget constraint would become:
A) flatter, reflecting the fact that hairbands are now relatively less expensive. 
B) steeper, reflecting the fact that hairbands are now relatively more expensive. 
C) flatter, reflecting the fact that earrings are now relatively less expensive. 
D) steeper, reflecting the fact that earrings are now relatively more expensive.

Quizplus · Accepted Answer

A decrease in the price of hairbands would result in a flatter budget constraint because Heather would be able to purchase more hairbands for the same amount of money, making them relatively cheaper. This would increase her purchasing power and allow her to purchase more of both goods, resulting in a flatter slope of the budget constraint.

If the Graph Shown Represents Heather's Budget Constraint,and the Price