Identify the correct statements with regard to the consumer's budget line/set.

(A) A decrease in the price of goods makes the budget line steeper
(B) A decrease in the price of goods makes the budget line flatter
(C) An increase in the price of goods makes the budget line steeper
(D) All bundles in the positive quadrant which are on or below the line are included in the budget set.

Choose the correct answer from the options given below:

(B), (C) and (D) only

The correct answer is Option (4) → (B), (C) and (D) only

(A) A decrease in the price of goods makes the budget line steeper.  Incorrect — A decrease in the price of a good allows the consumer to buy more of that good; hence the budget line becomes flatter (not steeper).

(B) A decrease in the price of goods makes the budget line flatter.  Correct — A decrease in the price of a good makes the budget line flatter, since the consumer can now afford more of that good for the same income.

(C) An increase in the price of goods makes the budget line steeper. Correct — An increase in the price of a good makes the budget line steeper, as the consumer can now afford less of that good.

(D) All bundles in the positive quadrant which are on or below the line are included in the budget set. Correct — The budget set includes all bundles on or below the budget line in the positive quadrant, since they are affordable given income and prices.