If the Consumer's Income Decreases While the Prices of Both

question 49

Multiple Choice

If the consumer's income decreases while the prices of both goods remain unchanged, what will happen to the budget line?

• A)The budget line rotates inward from the intercept on the horizontal axis.
• B)The budget line rotates outward from the intercept on the vertical axis.
• C)The budget line shifts inward without a change in slope.
• D)The budget line shifts outward without a change in slope.

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Definitions:

Cultural Values

The core principles and ideals upon which an entire community exists, guiding beliefs and preferences that are shared among the members of a culture.

Traditional Approach

A method or strategy that has been widely used for a long time, adhering to long-established practices rather than modern techniques.

Community Approach

A method that involves engaging and working together with members of a specific community to solve issues and improve overall wellbeing.

Environmental Factors

Elements within an individual's surroundings that influence their behavior, development, and well-being, including both natural and man-made conditions.