The below indifference map shows the various combinations of hours of music and apples that yield different levels of utility.Figure 7.1

-Which of the following will most likely happen when a person's income increases, other things equal?
A)The budget line will shift outward
B)The budget line will become steeper
C)The budget line will become flatter
D)The indifference curves will shift outward
E)The indifference curves will shift downward

Question

The below indifference map shows the various combinations of hours of music and apples that yield different levels of utility.Figure 7.1
 
-Which of the following will most likely happen when a person's income increases, other things equal?
A)The budget line will shift outward 
B)The budget line will become steeper 
C)The budget line will become flatter 
D)The indifference curves will shift outward 
E)The indifference curves will shift downward

Quizplus · Accepted Answer

When a person's income increases, their budget constraint becomes less binding and they are able to afford more of both goods. This will cause the budget line to shift outward, allowing the consumer to reach higher levels of utility on their indifference map.

The Below Indifference Map Shows the Various Combinations of Hours