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Suppose a Consumer Can Purchase Only Two Goods, Pasta and Cheese

Question 48

Multiple Choice

Suppose a consumer can purchase only two goods, pasta and cheese. Let the quantity of pasta be measured on the vertical axis and the quantity of cheese be measured on the horizontal axis. If the price of pasta falls, with no change in the price of cheese or in the consumer's money income, then the budget line for the consumer will shift


A) outward parallel to the existing budget line.
B) away from the origin and become steeper.
C) away from the origin and become flatter.
D) toward the origin and become steeper.
E) toward the origin and become flatter.

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