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- in the Diagram Above, Cheri's Budget Line Shifts Outward

Question 6

Multiple Choice

- In the diagram above, Cheri's budget line shifts outward from AB to CD. Which statement below is consistent with this shift? A) Both prices double; her income doubles. B) Her income is reduced; no change in either price. C) Both prices are reduced by 50 percent; her income is reduced by less than 50 percent. D) Both the price of good 1 and Cheri's income increase; there is no change in the price of good
- In the diagram above, Cheri's budget line shifts outward from AB to CD. Which statement below is consistent with this shift?


A) Both prices double; her income doubles.
B) Her income is reduced; no change in either price.
C) Both prices are reduced by 50 percent; her income is reduced by less than 50 percent.
D) Both the price of good 1 and Cheri's income increase; there is no change in the price of good

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