Assume the quantity of apples is measured on the horizontal axis and the quantity of oranges is measured on the vertical axis. If the budget line rotates upward, while keeping the same horizontal intercept, then:
A) the price of apples decreased.
B) the price of oranges decreased.
C) the available income increased.
D) the price of oranges increased

Question

Quizplus · Accepted Answer

The upward rotation of the budget line with the same horizontal intercept indicates that the price of oranges has decreased, allowing more oranges to be purchased for the same income.

Assume the Quantity of Apples Is Measured on the Horizontal