Solved

In the Graph Above, a Is the Initial Budget Line

Question 9

Multiple Choice

In the graph above, A is the initial budget line and B is the new budget line. Which of the following changes might have occurred? A) P<sub>1</sub> was unchanged, P<sub>2</sub> increased, income decreased. B) P<sub>1</sub> decreased, P<sub>2</sub> increased, income was unchanged. C) P<sub>1</sub> increased, P<sub>2</sub> decreased, income was unchanged. D) P<sub>1</sub> decreased, P<sub>2</sub> was unchanged, income increased. In the graph above, A is the initial budget line and B is the new budget line. Which of the following changes might have occurred?


A) P1 was unchanged, P2 increased, income decreased.
B) P1 decreased, P2 increased, income was unchanged.
C) P1 increased, P2 decreased, income was unchanged.
D) P1 decreased, P2 was unchanged, income increased.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q4: When an economy is at full employment

Q5: If a consumer has an income of

Q6: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB9951/.jpg" alt=" - In the

Q7: A movement along the production possibilities curve

Q8: Society wants to use its scarce resources

Q10: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB9951/.jpg" alt=" Refer to the

Q11: Suppose there are two economies, Alpha and

Q12: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB9951/.jpg" alt=" - Refer to

Q13: Economics is the study of the efficient

Q14: If an economy is producing at a