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The Following Diagram Shows Two Budget Lines: a and B

Question 365

Multiple Choice

The following diagram shows two budget lines: A and B. The following diagram shows two budget lines: A and B. Which of the following could explain the change in the budget line from A to B? A) a simultaneous decrease in the price of X and the price of Y B) an increase in income C) a decrease in income and a decrease in the price of Y D) Both a and b are correct. Which of the following could explain the change in the budget line from A to B?


A) a simultaneous decrease in the price of X and the price of Y
B) an increase in income
C) a decrease in income and a decrease in the price of Y
D) Both a and b are correct.

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