Solved

The Following Diagram Shows Two Budget Lines: a and B

Question 109

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) an increase 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) an increase in income and a decrease in the price of Y
D) Both a and b are correct.

Correct Answer:

verifed

Verified

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

Related Questions

Q3: Explain the relationship between the budget constraint

Q43: Explain the difference between inferior and normal

Q110: Figure 21-11 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4796/.jpg" alt="Figure 21-11

Q111: Which of the following does not represent

Q113: Figure 21-8 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4796/.jpg" alt="Figure 21-8

Q114: A consumer has preferences over two goods,X

Q180: Suppose the only two goods that Brett

Q201: A family on a trip budgets $800

Q208: Bundle A contains 10 units of good

Q437: Suppose a consumer has an income of