If the price of the good measured on the x-axis becomes relatively cheaper,the budget line will
A) become vertical.
B) become steeper.
C) become flatter.
D) become horizontal.
E) shift rightward and not change its slope.

Question

Quizplus · Accepted Answer

When the price of one good on the x-axis becomes relatively cheaper, the consumer can afford to buy more of both goods for the same budget. This means that the budget line will rotate outward and become flatter, showing that the consumer can now buy more of both goods without having to increase their budget. The choice C) become flatter is the best choice because it accurately describes this relationship.

If the Price of the Good Measured on the X-Axis