Assume initially that the price of X (measured on the horizontal axis) is $9 and the price of Y (measured on the vertical axis) is $4. If the price of X now declines to $6, the budget line will:
A. be unaffected.
B. shift outward on the vertical axis.
C. shift inward on the horizontal axis.
D. shift outward on the horizontal axis.
Answer: D
Economics
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