When the price of a good a consumer buys rises,the consumer's budget line
A) shifts inward and its slope does not change.
B) shifts outward and its slope does not change.
C) rotates inward and its slope changes.
D) rotates outward and its slope changes.
E) does not change.

Question

Quizplus · Accepted Answer

When the price of a good increases, the consumer can afford less of that good with the same budget, causing the budget line to rotate inward. The slope changes because the relative price of the goods has changed.

When the Price of a Good a Consumer Buys Rises,the