Assume that a consumer purchases two products and the consumer's money income increases.All other things equal,the most likely effect is:
A) an outward shift in the production possibilities curve because the consumer can now satisfy more wants.
B) an inward shift in the budget line because the consumer can now purchase less of both products.
C) an outward shift in the budget line because the consumer can now purchase more of both products.
D) no change in the consumer's buying pattern.

Question

Quizplus · Accepted Answer

An increase in money income will shift the budget line outward, allowing the consumer to purchase larger quantities of both products. This assumes that prices of the products remain constant.

Assume That a Consumer Purchases Two Products and the Consumer's