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

question 120

Multiple Choice

If the consumer's income increases 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:

Assets

Resources owned by a company that have economic value and can be converted into cash.

Millions

A numerical unit equal to 1,000,000 or 10^6, often used in accounting and financial reporting to denote large values.

Cash Flow

The net amount of cash being transferred into and out of a business, reflecting the company's liquidity and overall financial health.

Stockholders

Individuals or entities that own shares in a corporation, thereby holding ownership interest in the company.