Economics JAMB

A rightward shift of the budget line is caused by a?

A. fall in consumer income
B. change in consumer taste
C. fall in the commodity relative price
D. rise in the consumer income

Correct Answer:

Option D – rise in the consumer income

Explanation

When there is an increase in income, a consumer can buy more of both goods and this shows an outward i.e. rightward shift in the budget line.

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