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Figure and Table: The Budget Line
-(Figure and Table: The Budget Line) Look at the figure and table The Budget Line. _____ in the price of clams would rotate the budget line along the _____ axis _____ the origin.
A) An increase; horizontal; toward
B) A decrease; horizontal; toward
C) An increase; vertical; toward
D) A decrease; vertical; away from

Question

Use the following to answer questions 
Figure and Table: The Budget Line  
-(Figure and Table: The Budget Line) Look at the figure and table The Budget Line. _____ in the price of clams would rotate the budget line along the _____ axis _____ the origin.
A) An increase; horizontal; toward 
B) A decrease; horizontal; toward 
C) An increase; vertical; toward 
D) A decrease; vertical; away from

Quizplus · Accepted Answer

According to the figure and table, an increase in the price of clams would rotate the budget line along the horizontal axis toward the origin. This is because clams are on the x-axis, and an increase in their price would reduce the quantity the consumer can buy, shifting the budget line inward along the x-axis (horizontal axis) toward the origin.

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