Solved

The Following Diagram Shows Two Budget Lines: a and B

Question 142

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) a decrease 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) a decrease 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

Q73: A rational person can have a negatively-sloped

Q74: A consumer's budget constraint for goods X

Q150: A budget constraint illustrates bundles that a

Q200: If a consumer consumes two goods, X

Q240: Jack and Diane each buy pizza and

Q251: Figure 21-2 The downward-sloping line on the

Q266: Calvin is planning ahead for retirement and

Q390: If an increase in the interest rate

Q532: When a consumer experiences a price decrease

Q543: Utility measures the<br>A)income a consumer receives from