Budget Lines The Following Questions Refer to the Following Diagram, Which Shows

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 D last year and basket A this year,

A) They are definitely better off this year than last year.
B) They were definitely better off last year than this year.
C) They could be equally well off in the two years.
D) It is impossible to tell wether they are better or worse off,even if we knew the person's preferences.