Inga's graph of her budget line has apples per week on the vertical axis and loaves of bread per week on the horizontal. A fall in the price of an apple shifts the
A) vertical intercept upward.
B) horizontal intercept leftward.
C) horizontal intercept rightward.
D) vertical intercept downward.

Question

Quizplus · Accepted Answer

When the price of apples falls, Inga can afford to buy more apples for the same amount of money, which increases the maximum quantity of apples she can purchase if she spends all her money on apples. This is represented by the vertical intercept moving upward on a budget line graph.

Inga's Graph of Her Budget Line Has Apples Per Week