-Use the above figure. When the budget line rotates from "b" to "c"
A) fewer units of J and fewer units of K will be purchased.
B) more units of J and more units of K will be purchased.
C) fewer units of J and more units of K will be purchased.
D) more units of J and fewer units of K will be purchased.

Question

-Use the above figure. When the budget line rotates from "b" to "c"
A) fewer units of J and fewer units of K will be purchased. 
B) more units of J and more units of K will be purchased. 
C) fewer units of J and more units of K will be purchased. 
D) more units of J and fewer units of K will be purchased.

Quizplus · Accepted Answer

When the budget line rotates from "b" to "c", it indicates a change in the price of one of the goods. If the budget line becomes steeper, it suggests that the price of good J has decreased, allowing more units of J to be purchased while fewer units of K are purchased due to the budget constraint.

-Use the Above Figure