Start learning →

An increase in income, prices constant, shifts the budget line how?

APivots to the origin
BMoves right, parallel
CMoves left, parallel
DBecomes steeper
Answer & Solution
Correct answer: B. Moves right, parallel
Higher income lets the consumer buy more of both goods, shifting the line outward in parallel.
Practise this question with Quill — CA Foundation →

Keep practising Theory of Consumer Behaviour

Browse all Theory of Consumer Behaviour questions for CA Foundation, or explore more Business Economics topics.

Start a Theory of Consumer Behaviour lesson →
Related questions