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 decrease in the prices of both goods?
A) graph a
B) graph b
C) graph c
D) None of the above is correct.

Question

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 decrease in the prices of both goods?
A) graph a 
B) graph b 
C) graph c 
D) None of the above is correct.

Quizplus · Accepted Answer

A decrease in the prices of both goods would typically result in a shift of the budget constraint outward, which is not depicted in any of the graphs mentioned.

Figure 21-3 In Each Case,the Budget Constraint Moves from BC-1 to BC-2