Assume That Food Is Measured on the Horizontal Axis and Clothing

question 105

Multiple Choice

Assume that food is measured on the horizontal axis and clothing on the vertical axis. If the price of food falls relative to that of clothing, the budget line will:

• A) become flatter.
• B) become steeper.
• C) shift outward.
• D) become steeper or flatter depending on the relationship between prices and income.