Assume that 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, it implies that
A)the price of apples has decreased.
B)the price of oranges has decreased.
C)the available income has increased.
D)the price of oranges has 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 amount of income.

Assume That the Quantity of Apples Is Measured on the Horizontal