If the price of good X decreases,what will happen to the budget line?
A) It will have a parallel shift inward.
B) It will have a parallel shift outward.
C) It will become steeper.
D) It will become flatter.

Question

Quizplus · Accepted Answer

When the price of good X decreases, the budget line becomes flatter because the consumer can now purchase more of good X for the same amount of money, effectively increasing the slope of the budget line in a graph where good X is on the horizontal axis.

If the Price of Good X Decreases,what Will Happen to the Budget