Increases in the price of the good measured on the horizontal axis will make the horizontal intercept _____ and make the budget line _____.
A) larger; steeper
B) larger; flatter
C) smaller; steeper
D) smaller; flatter

Question

Quizplus · Accepted Answer

An increase in the price of the good on the horizontal axis reduces the quantity that can be purchased, making the intercept smaller and the budget line steeper.

Increases in the Price of the Good Measured on the Horizontal