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    Principles of Microeconomics Study Set 10
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    Exam 21: The Theory of Consumer Choice
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    If We Observe That William's Budget Constraint Has Moved Inward
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If We Observe That William's Budget Constraint Has Moved Inward

Question 520

Question 520

Multiple Choice

If we observe that William's budget constraint has moved inward, then we know for certain that


A) his income must have decreased.
B) he will be indifferent between goods X and Y.
C) the price of one or both of the goods must have increased.
D) his utility will decrease.

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