-The Above Figure Gives Your Budget Line Between CDs and Magazines

question 326

Multiple Choice

-The above figure gives your budget line between CDs and magazines. If the price of a magazine falls, then the budget line

• A) shifts outward and the slope does not change.
• B) rotates inward with no change in the horizontal intercept.
• C) rotates inward with no change in the vertical intercept.
• D) rotates outward with no change in the vertical axis.

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