What happens to the budget constraint and optimum consumption when a consumer's income decreases?

• A. The budget constraint becomes steeper, indicating a preference for one good over another.
• B. The budget constraint shifts inward, leading to a lower indifference curve being tangent to the budget line.
• C. The budget constraint remains unchanged, but the consumer can choose different combinations of goods.
• D. The budget constraint shifts outward, allowing the consumer to reach a higher indifference curve.

Answer: (B)