If the price of the good measured on the horizontal axis is subject to volume penalties,then:
A) the budget line will get steeper as the consumer moves along it from left to right.
B) the budget line will get flatter as the consumer moves along it from left to right.
C) the indifference curve will get steeper as the consumer moves along it from left to right.
D) the indifference curve will get flatter as the consumer moves along it from left to right.

Question

Quizplus · Accepted Answer

When the price of a good increases with the quantity purchased (volume penalties), the cost of purchasing additional units of that good increases relative to other goods. This makes the budget line steeper as the consumer buys more of the good, reflecting the increased marginal cost of the good.

If the Price of the Good Measured on the Horizontal