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(Figure: Good Y and Good X V) Suppose the Budget

Question 110

Multiple Choice

(Figure: Good Y and Good X V) Suppose the budget constraint shifted from constraint 2 to constraint 1. What could have caused this change? (Figure: Good Y and Good X V) 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 relative to that of good Y 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 price of good X and no change in the price of Y


A) a decrease in income
B) a decrease in the price of good X relative to that of good Y
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 price of good X and no change in the price of Y

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