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Use the Following to Answer Questions 38-40

Question 31

Multiple Choice

Use the following to answer questions 38-40:
Figure 4.14 Use the following to answer questions 38-40: Figure 4.14 -(Figure 4.14) Suppose the budget constraint shifted from constraint 2 to constraint 1. What could have caused this change? A) a decrease in income B) a decrease in the price of good X C) a decrease in income and an increase in the price of good X relative to that of good Y D) an increase in the relative price of good X to that of good Y
-(Figure 4.14) Suppose the budget constraint shifted from constraint 2 to constraint 1. What could have caused this change?


A) a decrease in income
B) a decrease in the price of good X
C) a decrease in income and an increase in the price of good X relative to that of good Y
D) an increase in the relative price of good X to that of good Y

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