Asked by Morghan Graper on Jul 03, 2024
Verified
(Figure and Table: The Budget Line) Use Figure and Table: The Budget Line.A(n) _____ in the price of clams would rotate the budget line,changing the intercept on the _____ axis and moving it _____ the origin.
A) increase;horizontal;away from
B) decrease;horizontal;away from
C) increase;vertical;toward
D) decrease;vertical;away from
Budget Line
A graphical representation of all possible combinations of two goods that can be purchased at given prices and within a consumer's budget.
Horizontal Axis
In a graph or chart, the x-axis, which usually represents the independent variable or time scale.
- Investigate the effect of price fluctuations on budgetary lines and potential consumption choices.
Verified Answer
VG
valerie guzmanJul 06, 2024
Final Answer :
B
Explanation :
A decrease in the price of clams would increase the consumer's purchasing power, allowing them to buy more of both goods. This would cause the budget line to shift outward (away from the origin) and change the intercept on the horizontal axis (representing the quantity of clams). Therefore, the correct answer is B.
Learning Objectives
- Investigate the effect of price fluctuations on budgetary lines and potential consumption choices.