Exhibit 6A-1 Budget line

-As shown in Exhibit 6A-1, a rightward shift in the budget line from AB to CD would result from:
A) a price reduction in good X.
B) a price reduction in good Y.
C) a change in consumer preference.
D) an increase in consumer income.

Question

Exhibit 6A-1 Budget line
​ 
-​As shown in Exhibit 6A-1, a rightward shift in the budget line from AB to CD would result from:
A) ​a price reduction in good X. 
B) ​a price reduction in good Y. 
C) ​a change in consumer preference. 
D) ​an increase in consumer income.

Quizplus · Accepted Answer

A rightward shift in the budget line indicates that the consumer can now afford more of both goods, which typically results from an increase in consumer income.

Exhibit 6A-1 Budget Line