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Figure: Kristin's Budget Line Use the following to answer questions: Figure: Kristin's Budget Line   -(Figure: Kristin's Budget Line)  Look at the figure Kristin's Budget Line. The price of a cup of cappuccino is $3, and the price of an apple is $1. Suppose Kristin initially consumes 10 cups of cappuccino and 30 apples. Then, the price of apples increases to $3 each and the price of cappuccino remains unchanged. As a result of the price change, Kristin's optimal consumption bundle changes, reflected by a decrease in the consumption of both apples and cappuccinos. If Kristin is to maintain the same level of utility as before the price change, she must: A)  increase her income. B)  decrease her income. C)  keep her income the same, since only one good's price changed. D)  increase her income by $2.
-(Figure: Kristin's Budget Line) Look at the figure Kristin's Budget Line. The price of a cup of cappuccino is $3, and the price of an apple is $1. Suppose Kristin initially consumes 10 cups of cappuccino and 30 apples. Then, the price of apples increases to $3 each and the price of cappuccino remains unchanged. As a result of the price change, Kristin's optimal consumption bundle changes, reflected by a decrease in the consumption of both apples and cappuccinos. If Kristin is to maintain the same level of utility as before the price change, she must:


A) increase her income.
B) decrease her income.
C) keep her income the same, since only one good's price changed.
D) increase her income by $2.

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