Refer to the graph. The shift of the budget line from AB to CD is consistent with
A)a decrease in the consumer's money income.
B)a decrease in the prices of both Goods 1 and 2.
C)an increase in the prices of both Goods 1 and 2.
D)a decrease in the price of Good 1, and an increase in the price of Good 2.

Question

Refer to the graph. The shift of the budget line from AB to CD is consistent with
A)a decrease in the consumer's money income. 
B)a decrease in the prices of both Goods 1 and 2. 
C)an increase in the prices of both Goods 1 and 2. 
D)a decrease in the price of Good 1, and an increase in the price of Good 2.

Quizplus · Accepted Answer

The Answer of  Refer to the graph. The shift of the budget line from AB to CD is consistent with
A)a decrease in the consumer's money income. 
B)a decrease in the prices of both Goods 1 and 2. 
C)an increase in the prices of both Goods 1 and 2. 
D)a decrease in the price of Good 1, and an increase in the price of Good 2.

Refer to the Graph