If goods P and Q are purchased by a consumer, a fall in the price P with the price Q unchanged will cause the budget line to

F2f

1 year ago

The answer is wrong
Because a budget line shows the combination of goods P and Q that a consumer can buy with a fixed income. If the price of P falls while Q remains unchanged, the consumer can now afford more of P for the same income.
so the intercept of P axis increases while the Q axis intercept remains the same.
This means the budget line rotates outward away from the origin on the P axis side