An increase in a consumer's income will cause the budget line to:
A) shift outward.
B) shift inward.
C) become steeper.
D) become flatter.

Name: An increase in a consumer's income will cause the budget line to: A) shift outward. B) shift inward. C) become steeper. D) become flatter.
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Question

Quizplus · Accepted Answer

An increase in a consumer's income will cause the budget line to shift outward. This implies that the consumer can now afford more quantities of both goods, leading to a shift of the budget line away from the origin.

An Increase in a Consumer's Income Will Cause the Budget