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If a Consumer Purchases Two Goods, Food (Measured Along the X-Axis)and

Question 4

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If a consumer purchases two goods, food (measured along the x-axis) and housing (measured along the axis) , then what happens to the slope of the consumer's budget constraint if the price of food falls?


A) The new budget constraint shifts inward but is parallel to the original budget constraint.
B) The new budget constraint pivots inward (towards the origin) along the xx axis. The new slope is steeper than the original slope.
C) The new budget constraint pivots inward (towards the origin) along the xx axis. The new slope is flatter than the original slope.
D) The new budget constraint pivots outward (away from the origin) along the xx axis. The new slope is flatter than the original slope.

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