Exhibit 6-26 Consider Exhibit 6-26

Multiple Choice

Exhibit 6-26 Consider Exhibit 6-26.Three budget lines are shown.Which of the following statements is true about the budget lines?

A) Budget line B₂ reflects the same income and price for DVDs as budget line B₁ but a higher price for books.
B) Budget line B₃ reflects a higher income but the same price for both books and DVDs as budget line B₂.
C) Budget line B₃ reflects higher income and the same prices for both books and DVDs as budget line B₁.
D) Budget line B₁ reflects lower income than budget line B₂.
E) Budget line B3 reflects a lower price ration than budget line B₃.