Consider the problem Marsha faces of how to allocate her weekly allowance between books and videos. An increase in Marsha's
allowance will:
Oshift her budget line to the right
shift her budget line to the left
rotate her budget line, allowing her to buy more books but not more videos
rotate her budget line, allowing her to buy more videos but not more books



Answer :

Final answer:

An increase in income shifts a consumer's budget line to the right, enabling them to purchase more goods and services while maximizing their utility.


Explanation:

An increase in income for a consumer will shift their budget line to the right. This shift indicates that the consumer can now afford to purchase more goods and services. The rise in income alters the consumer's utility-maximizing choice, allowing them to reach a higher level of satisfaction by consuming more of the goods they desire.


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