If the Price of Good X Increases,what Will Happen to the Budget

question 109

Multiple Choice

If the price of good X increases,what will happen to the budget line?

• A) It will shift outward.
• B) It will become steeper.
• C) It will become flatter.
• D) It will shift inward.

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Definitions:

Effectiveness

The degree to which something is successful in producing a desired or intended result, often measured against specific goals or standards.

Relevant Cost

A relevant cost is a cost that will be affected by a decision in the future and is important in business decision-making processes.

Depreciation Charge

An accounting expense recorded to allocate the cost of a tangible asset over its useful life.