A decrease in income will cause a consumer's budget constraint to
A)shift outward, parallel to its initial position.
B)shift inward, parallel to its initial position.
C)pivot along the horizontal axis.
D)pivot along the vertical axis.

Question

Quizplus · Accepted Answer

A decrease in income reduces the amount of goods a consumer can afford, causing the budget constraint to shift inward, parallel to its initial position.

A Decrease in Income Will Cause a Consumer's Budget Constraint