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The Diagram Below Shows a Set of Budget Lines Facing

Question 95

Multiple Choice

The diagram below shows a set of budget lines facing a household. The diagram below shows a set of budget lines facing a household. FIGURE 6-8 -Refer to Figure 6-8.The movement of the budget line from ab to ef could be caused by A) a decrease in money income. B) a decrease in the price of either food or housing. C) an equal percentage decrease in the price of both food and housing. D) an equal percentage increase in the price of both food and housing. E) an increase in the price of either food or housing. FIGURE 6-8
-Refer to Figure 6-8.The movement of the budget line from ab to ef could be caused by


A) a decrease in money income.
B) a decrease in the price of either food or housing.
C) an equal percentage decrease in the price of both food and housing.
D) an equal percentage increase in the price of both food and housing.
E) an increase in the price of either food or housing.

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