Exhibit 20-8

-Refer to Exhibit 20-8. A move of the budget constraint from 2 to 3 is caused by a

Name: Exhibit 20-8 -Refer to Exhibit 20-8. A move of the budget constraint from 2 to 3 is caused by a
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Question

Exhibit 20-8
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-Refer to Exhibit 20-8. A move of the budget constraint from 2 to 3 is caused by a

Quizplus · Accepted Answer

A move of the budget constraint from 2 to 3, assuming it represents an outward shift along the axis of good X, indicates that good X has become cheaper, allowing the consumer to purchase more of good X for the same amount of income.

Exhibit 20-8 ​

Exhibit 20-8