Refer to the information provided in Figure 6.6 below to answer the question(s) that follow. Figure 6.6
-Refer to Figure 6.6. Bill's budget constraint was originally CD. If his new budget constraint is EF, then his income
A) increased.
B) decreased.
C) did not change but the price of black beans decreased.
D) did not change but the price of bell peppers decreased.

Question

Refer to the information provided in Figure 6.6 below to answer the question(s) that follow.  Figure 6.6
-Refer to Figure 6.6. Bill's budget constraint was originally CD. If his new budget constraint is EF, then his income
A) increased. 
B) decreased. 
C) did not change but the price of black beans decreased. 
D) did not change but the price of bell peppers decreased.

Quizplus · Accepted Answer

When a budget constraint shifts outward from CD to EF, it indicates that the consumer's income has increased, allowing them to afford more of both goods.

Refer to the Information Provided in Figure 6