An increase in a consumer's income will NOT:
A) shift the budget line away from the origin.
B) increase the horizontal intercept.
C) increase the vertical intercept.
D) change the slope of the budget line.

Question

Quizplus · Accepted Answer

An increase in the consumer's income will only result in a parallel shift of the budget line, which means that the slope of the budget line remains the same. Therefore, option D is the correct answer. Options A, B, and C are incorrect as an increase in the consumer's income will result in a shift of the budget line away from the origin, increase in the horizontal intercept and an increase in the vertical intercept of the budget line.

An Increase in a Consumer's Income Will NOT