If the price of good X increases,what will happen to the budget line?
A) It will shift outward.
B) It will become steeper.
C) It will become flatter.
D) It will shift inward.

Question

Quizplus · Accepted Answer

When the price of good X increases, the budget line becomes steeper because the consumer can now afford less of good X relative to good Y with the same budget, reflecting a higher opportunity cost of consuming good X.

If the Price of Good X Increases,what Will Happen to the Budget