Decreases in product prices causes the consumer's:
A) production possibilities curves to shift outward from the origin.
B) production possibilities curves to shift inward to the origin.
C) budget line to shift outward from the origin.
D) budget line to shift inward to the origin.

Question

Quizplus · Accepted Answer

Decreases in product prices mean that the consumer can now purchase more goods with the same amount of money. This increase in purchasing power shifts the budget line outward from the origin, allowing the consumer to purchase a higher combination of goods.

Decreases in Product Prices Causes the Consumer's