If the quantity of milk is measured on the horizontal axis and the quantity of juice is measured on the vertical axis,a decrease in the price of milk will cause a budget constraint to ________.
A) pivot rightward along the vertical axis
B) pivot rightward along the horizontal axis
C) shift to the left
D) shift to the right

Question

Quizplus · Accepted Answer

A decrease in the price of milk will lead to a decrease in the price ratio of milk to juice, making milk relatively cheaper compared to juice. As a result, the consumer will buy more milk and less juice, causing the budget constraint to pivot rightward along the horizontal axis.

If the Quantity of Milk Is Measured on the Horizontal