If the price of good H increases, how does this affect the consumer's budget constraint and optimum consumption?

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

Answer: (C)