How would you graphically determine the effect of a price decrease in good G on the consumer's budget constraint and optimum consumption?

• A. The budget constraint becomes steeper, indicating a preference for another good.
• B. The budget constraint pivots outward on the axis representing good G, allowing the consumer to reach a higher indifference curve.
• C. The budget constraint remains unchanged, but the consumer can choose different combinations of goods.
• D. The budget constraint shifts inward, reducing the consumer's ability to reach higher indifference curves.

Answer: (B)