Other things being equal, if there is a price increase of a good measured on the vertical axis, the budget constraint shifts outward.

Name: Other things being equal, if there is a price increase of a good measured on the vertical axis, the budget constraint shifts outward.
Brand: Quizplus
Rating: 4.8 (32 reviews)

Question

Quizplus · Accepted Answer

If there is a price increase of a good measured on the vertical axis, the budget constraint shifts inward, as it becomes more expensive to purchase the same quantity of the good.

Other Things Being Equal, If There Is a Price Increase