Assume Claudia's budget constraint is represented by line A in the graph shown. Which of the following would cause Claudia's budget constraint to shift to line C?
A)Claudia's income increases.
B)Claudia's income decreases.
C)Claudia's preferences for these two goods decrease.
D)The prices of both goods decrease.

Question

Assume Claudia's budget constraint is represented by line A in the graph shown. Which of the following would cause Claudia's budget constraint to shift to line C?
A)Claudia's income increases. 
B)Claudia's income decreases. 
C)Claudia's preferences for these two goods decrease. 
D)The prices of both goods decrease.

Quizplus · Accepted Answer

The Answer of  Assume Claudia's budget constraint is represented by line A in the graph shown. Which of the following would cause Claudia's budget constraint to shift to line C?
A)Claudia's income increases. 
B)Claudia's income decreases. 
C)Claudia's preferences for these two goods decrease. 
D)The prices of both goods decrease.

Assume Claudia's Budget Constraint Is Represented by Line a in the Graph