Goods X and Y

Multiple Choice

Goods X and Y

For the following questions, assume that good X is on the horizontal axis and good Y is on the vertical axis in the consumer-choice diagram. PX denotes the price of good X, PY is the price of good Y, and I is the consumer's income. Unless otherwise stated, the consumer's preferences are assumed to satisfy the standard assumptions.

-Refer to Goods X and Y.When the price of good X rises,what happens to the budget line?

A) The budget line shifts in,with no change in the slope.
B) The budget line becomes flatter,and the horizontal intercept moves to the right.
C) The budget line becomes steeper,with no change in the vertical intercept.
D) The budget line pivots about the horizontal intercept,with the vertical intercept moving up.