Multiple Choice
Budget Lines
The following questions refer to the following diagram, which shows the budget lines faced by a consumer last year and this year.
-Refer to Budget Lines.If the consumer purchased basket B last year and purchases basket C this year,we can conclude that
A) the consumer is not behaving optimally.
B) the consumer's tastes changed between this year and last year.
C) the consumer's indifference curves cannot be convex.
D) the law of demand does not hold for this consumer.
Correct Answer:

Verified
Correct Answer:
Verified
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