Asked by Suzanne Meyer on Jun 09, 2024
Verified
An increase in money income:
A) shifts the consumer's budget line to the right.
B) shifts the consumer's budget line to the left.
C) increases the slope of the budget line.
D) has no effect on the budget line.
Budget Line
A graphical representation of all possible combinations of two goods that a consumer can afford given their income and the prices of the goods.
- Understand the influence of shifts in consumer income on budget lines and choices made by consumers.
Verified Answer
SB
Stephanie BuchananJun 10, 2024
Final Answer :
A
Explanation :
An increase in money income will shift the consumer's budget line to the right. This is because the consumer now has more money to spend on goods and services, which increases the total amount of goods and services he or she can buy.
Learning Objectives
- Understand the influence of shifts in consumer income on budget lines and choices made by consumers.
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