Solved

Refer to the Budget Line Shown in the Diagram

Question 215

Multiple Choice

Refer to the budget line shown in the diagram. Given the same money income, reductions in the prices of both products C and D will Refer to the budget line shown in the diagram. Given the same money income, reductions in the prices of both products C and D will   A)  shift the budget line outward on the horizontal axis but leave it anchored at  10  on the vertical axis. B)  shift the budget line to the left. C)  shift the budget line to the right. D)  have no effect on the budget line.


A) shift the budget line outward on the horizontal axis but leave it anchored at "10" on the vertical axis.
B) shift the budget line to the left.
C) shift the budget line to the right.
D) have no effect on the budget line.

Correct Answer:

verifed

Verified

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

Related Questions