Refer to the information provided in Figure 6.3 below to answer the question(s) that follow. Figure 6.3
-Refer to Figure 6.3. Molly's budget constraint is AC. It would swivel to AB if the price of
A) DVDs increased.
B) DVDs decreased.
C) CDs increased.
D) CDs decreased.

Question

Refer to the information provided in Figure 6.3 below to answer the question(s) that follow.  Figure 6.3
-Refer to Figure 6.3. Molly's budget constraint is AC. It would swivel to AB if the price of
A) DVDs increased. 
B) DVDs decreased. 
C) CDs increased. 
D) CDs decreased.

Quizplus · Accepted Answer

If the price of DVDs increased, Molly would have to give up more CDs to buy the same number of DVDs. This would cause her budget constraint to swivel to AB.

Refer to the Information Provided in Figure 6