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    Exam 21: The Theory of Consumer Choice
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    If We Observe That Rae's Budget Constraint Has Shifted Outward,then
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If We Observe That Rae's Budget Constraint Has Shifted Outward,then

Question 88

Question 88

Multiple Choice

If we observe that Rae's budget constraint has shifted outward,then we know for certain that


A) her income must have increased.
B) she will be indifferent between goods X and Y.
C) the price of one or both of the goods must have decreased.
D) she can reach a higher indifference curve.

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