An increase in the consumer's income will do all of the following, except

shift the budget line away from the origin
increase the horizontal intercept
increase the vertical intercept
change the slope of the budget line

I think it is shift the budget line away from the origin is that correct

No. an increase in a consumer's income shifts the budget line away from the origin, which means both the horizontal and vertical intercepts increase. The slope of the budget line is determined by relative prices. If prices don't change, the slope doesnt change.

Yes, you are correct. An increase in the consumer's income will do all of the following, except shift the budget line away from the origin.

To understand why, let's examine the concept of a budget line. A budget line represents all the possible combinations of two goods that a consumer can afford given their income and the prices of the goods. It shows the trade-off between purchasing one good and the other.

Now, an increase in the consumer's income will lead to a higher budget constraint. This means that they can afford more goods and services than before. When we plot the budget line on a graph, the intercepts represent the maximum quantity of each good that can be purchased.

So, let's consider the given options:

- "Shift the budget line away from the origin": This statement is incorrect because an increase in income will actually shift the budget line towards the origin. This is because the consumer can afford more goods, but the prices of the goods remain the same. The budget line will pivot around the vertical intercept (which represents the quantity of the first good) and move towards the origin.

- "Increase the horizontal intercept": This statement is correct. An increase in income will cause the horizontal intercept of the budget line to increase. The horizontal intercept represents the quantity of the second good that can be purchased when no units of the first good are purchased.

- "Increase the vertical intercept": This statement is correct. An increase in income will cause the vertical intercept of the budget line to increase. The vertical intercept represents the quantity of the first good that can be purchased when no units of the second good are purchased.

- "Change the slope of the budget line": This statement is correct. An increase in income will change the slope of the budget line. The slope represents the rate at which one good can be exchanged for another. With a higher income, the consumer's purchasing power increases, affecting the relative prices of the goods and, therefore, the slope of the budget line.

So, to recap, an increase in the consumer's income will not shift the budget line away from the origin. It will, however, increase both the horizontal and vertical intercepts and change the slope of the budget line.