Asked by Jazzy Asberry on Apr 26, 2024

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(Figure and Table: The Budget Line) Use Figure and Table: The Budget Line.An increase in income would:

A) rotate the budget line,changing the intercept on the horizontal axis.
B) shift the budget line to the left.
C) rotate the budget line,changing the intercept on the vertical axis.
D) shift the budget line to the right.

Budget Line

A visual depiction of every potential pairing of two items that can be bought within a certain budget at constant prices.

Increase In Income

A rise in the amount of money earned or received by an individual or within an economy over a specific period.

Horizontal Axis

In a graph or chart, the x-axis, which typically represents the independent variable or time period.

  • Gain insight into how changes in earnings influence budget allocations and consumer decision-making.
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HM
Howard MokoloMay 01, 2024
Final Answer :
D
Explanation :
An increase in income would shift the budget line to the right, as the consumer would have more money to spend, increasing the maximum quantity of both goods they can purchase.