A consumer has $100 that she can spend on tables and chairs.If her income increases to $200 and the prices of tables and chairs remains unchanged,her budget constraint will ________.
A) pivot to the left along the vertical axis
B) pivot to the right along the horizontal axis
C) shift to the left
D) shift to the right

Question

Quizplus · Accepted Answer

An increase in income will result in an outward shift of the budget constraint, hence the budget constraint will shift to the right.

A Consumer Has $100 That She Can Spend on Tables