Exhibit 6-26 -Consider Exhibit 6-26. Three budget lines are shown. Which of the following statements is true about the budget lines? A) Budget line B₂ reflects the same income and price for DVDs as budget line B₁ but a higher price for books. B) Budget line B₃ reflects a higher income but the same price for both books and DVDs as budget line B₂. C) Budget line B₃ reflects higher income and the same prices for both books and DVDs as budget line B₁. D) Budget line B₁ reflects lower income than budget line B₂. E) Budget line B3 reflects a lower price ration than budget line B₃.

Question

Quizplus · Accepted Answer

Budget line B₃ reflects higher income and the same prices for both books and DVDs as budget line B₁, indicating a parallel shift outward due to increased income.

Exhibit 6-26 -Consider Exhibit 6-26. Three Budget Lines Are Shown. Which of Shown