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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. A decrease 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. A decrease 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

A decrease in income would shift the budget line to the left, as the consumer can afford to buy less of both goods.

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