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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. An increase in income would:
A) rotate the budget line along the horizontal axis.
B) shift the budget line to the left.
C) rotate the budget line along the vertical axis.
D) shift the budget line to the right.

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. An increase in income would:
A) rotate the budget line along the horizontal axis. 
B) shift the budget line to the left. 
C) rotate the budget line along the vertical axis. 
D) shift the budget line to the right.

Quizplus · Accepted Answer

An increase in income would shift the budget line to the right as it would allow the consumer to purchase more of both goods at any given price level.

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