A change in a consumer's feelings about the desirability of a good will result in an altered slope of the budget constraint.

Question

Quizplus · Accepted Answer

A change in a consumer's feelings about the desirability of a good affects their preferences and thus shifts the indifference curve, not the budget constraint. The budget constraint is determined by the prices of goods and the consumer's income, not by their preferences.

A Change in a Consumer's Feelings About the Desirability of a Good