JAMB Economics 2014 Objective — Question 12

Question 12 of 50 from the Joint Admissions and Matriculation Board (JAMB) Economics 2014 Objective paper, with the correct answer and a full explanation.

A rightward shift of the budget line is caused by a

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

Explanation

A fall in a commodity's relative price means more units can be bought with the same money income, causing the budget line to shift outward (rightward).

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