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    Principles of Economics Study Set 8
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    Exam 21: The Theory of Consumer Choice
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    Figure 21-3 in Each Case, the Budget Constraint Moves from BC-1 to BC-1
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Figure 21-3 in Each Case, the Budget Constraint Moves from BC-1 to BC-1

Question 309

Question 309

Multiple Choice

Figure 21-3
In each case, the budget constraint moves from BC-1 to BC-2. Figure 21-3 In each case, the budget constraint moves from BC-1 to BC-2.   -Refer to Figure 21-3. Which of the graphs in the figure could reflect a simultaneous decrease in the prices of both goods? A)  (i)  only B)  (iv)  only C)  (ii)  or (iii)  only D)  None of the above is correct.
-Refer to Figure 21-3. Which of the graphs in the figure could reflect a simultaneous decrease in the prices of both goods?


A) (i) only
B) (iv) only
C) (ii) or (iii) only
D) None of the above is correct.

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