The budget line shift from cd to ab in the below figure is consistent with:
A) decreases in the prices of both M and N.
B) an increase in the price of M and a decrease in the price of N.
C) a decrease in money income.
D) an increase in money income.

Question

The budget line shift from cd to ab in the below figure is consistent with: 
A) decreases in the prices of both M and N. 
B) an increase in the price of M and a decrease in the price of N. 
C) a decrease in money income. 
D) an increase in money income.

Quizplus · Accepted Answer

The Answer of The budget line shift from cd to ab in the below figure is consistent with: 
A) decreases in the prices of both M and N. 
B) an increase in the price of M and a decrease in the price of N. 
C) a decrease in money income. 
D) an increase in money income.

The Budget Line Shift from Cd to Ab in the Below