Solved

Budget Lines The Following Questions Refer to the Following Diagram, Which Shows

Question 50

Multiple Choice

Budget Lines

The following questions refer to the following diagram, which shows the budget lines faced by a consumer last year and this year.
Budget Lines  The following questions refer to the following diagram, which shows the budget lines faced by a consumer last year and this year.   -Refer to Budget Lines.Which of the following changes is consistent with the situation shown in the diagram? A)  The consumer's income fell. B)  The relative price of good X in terms of good Y fell. C)  The absolute price of good X rose,and the absolute price of good Y fell. D)  The absolute price of both goods rose,with the price of good X rising by the higher percentage.
-Refer to Budget Lines.Which of the following changes is consistent with the situation shown in the diagram?


A) The consumer's income fell.
B) The relative price of good X in terms of good Y fell.
C) The absolute price of good X rose,and the absolute price of good Y fell.
D) The absolute price of both goods rose,with the price of good X rising by the higher percentage.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents