-Use the above figure. When the budget line rotates from "c" to "b"
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 "c" to "b"
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 "c" to "b", the consumer will purchase fewer units of J and more units of K because the price of J has increased relative to the price of K.

-Use the Above Figure