Which of the following describes what happens to a consumer’s budget line if the consumer’s budget increases? The budget line

The correct answer is: B. Shifts farther away from the origin of the graph.

A budget line is a graph that shows the combinations of goods and services that a consumer can afford with a given budget. The budget line slopes downward, indicating that the consumer must give up some of one good to consume more of the other. If the consumer’s budget increases, the budget line will shift outward, reflecting the fact that the consumer can now afford to consume more of both goods.

Option A is incorrect because a budget line becomes steeper when the price of one good increases relative to the price of the other good.

Option C is incorrect because a budget line does not change if the consumer’s income or the prices of goods remain constant.

Option D is incorrect because a budget line does not become horizontal unless the price of one good is zero.