a decrease in money income. an increase in money income. an increase in the pric
ID: 1144765 • Letter: A
Question
a decrease in money income.
an increase in money income.
an increase in the price of Good 1 and no change in the price of Good 2.
a decrease in the price of Good 2 and no change in the price of Good 1.
a decrease in money income.
an increase in money income.
an increase in the price of Good 1 and no change in the price of Good 2.
a decrease in the price of Good 2 and no change in the price of Good 1.
B D Good 1 Refer to the above graph. The shift of the budget line from AB to CD is consistent with:Explanation / Answer
The correct answer is option B because increase in income will shift the budget constraint outward as we will be able to buy more of each good at all the prices.