Respuesta :
The Budget Constraint will make a non-parallel shift inward if the price of one item goes up (D).
The Budget Constraint is the total amunt of items a person could afford with a limited current budget. Budget Constraint demonstrates the range of choices a person have within the budget he has. Budget Constraint is formed because a person is limited in his consumption pattern by a certain income.
Budget Constraint curve shows the range of choices a person have to choose between 2 objects within his limited income.
Let's discuss the options we have:
Option A: The Consumer's Income Goes Up
The increase of consumer's income means that the consumer will have more budget to spend. The consumer will be able to purchase more units of goods or services and wider extend his budget constraint. This condition will shift the Budget Constraint to the right or outward.
Option B: The Budget Goes Up
The increase in the budget will let the consumer to spend more and purchase more unit of goods than before. This event will move the Budget Constraint to the right or outward.
Option C: The Consumer's Satisfaction Goes Up
When a consumer feels satisfied, he may be willing to give more value to one of objects within his budget constraint. He will be more tolerate to one of the goods and willing to buy it more units even with more money. This condition wil move the budget constraint to the right or outward in a non-parallel shift,
Option D: The Price of One Item Goes Up
When the price of one item raises up, a consumer will change his budget constraint and shift it in a non-parallel manner because the Budget Constraint Equation is changing. The slope of the Budget Constraint will change as the curve shiftted. The Budget Constraint will shift to the left or inward in a non-parallel manner.
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