The Quantities of Good M Are Plotted on the Vertical

question 434

Multiple Choice

The quantities of Good M are plotted on the vertical axis while the quantities of Good N are plotted on the horizontal axis. The prices of both M and N fall. The intercepts of the budget line would

• A) decline along both axes.
• B) rise on the vertical axis and also rise on the horizontal axis.
• C) rise on the horizontal axis but stay unchanged on the vertical axis.
• D) rise on the vertical axis but stay unchanged along the horizontal axis.

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