Use the following to answer question:
-(Figure and Table: The Budget Line)Use Figure and Table: The Budget Line.A(n)_____ in the price of clams would rotate the budget line,changing the intercept on the _____ axis and moving it _____ the origin.
A)increase;horizontal;away from
B)decrease;horizontal;away from
C)increase;vertical;toward
D)decrease;vertical;away from

Question

Use the following to answer question: 
-(Figure and Table: The Budget Line)Use Figure and Table: The Budget Line.A(n)_____ in the price of clams would rotate the budget line,changing the intercept on the _____ axis and moving it _____ the origin.
A)increase;horizontal;away from 
B)decrease;horizontal;away from 
C)increase;vertical;toward 
D)decrease;vertical;away from

Quizplus · Accepted Answer

A decrease in the price of clams would increase the consumer's purchasing power, allowing them to buy more of both goods. This would cause the budget line to shift outward (away from the origin) and change the intercept on the horizontal axis (representing the quantity of clams). Therefore, the correct answer is B.

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