-Suppose that a consumer's original budget line was AC in Figure 6-4,but it has now changed to line AB.Which of the following must have occurred?
A)The price of good X must have risen.
B)The price of good Y must have risen.
C)The price of good Y must have fallen.
D)The price of good X must have fallen.
E)The consumer's income must have risen.

Question

-Suppose that a consumer's original budget line was AC in Figure 6-4,but it has now changed to line AB.Which of the following must have occurred?
A)The price of good X must have risen. 
B)The price of good Y must have risen. 
C)The price of good Y must have fallen. 
D)The price of good X must have fallen. 
E)The consumer's income must have risen.

Quizplus · Accepted Answer

The Answer of 
-Suppose that a consumer's original budget line was AC in Figure 6-4,but it has now changed to line AB.Which of the following must have occurred?
A)The price of good X must have risen. 
B)The price of good Y must have risen. 
C)The price of good Y must have fallen. 
D)The price of good X must have fallen. 
E)The consumer's income must have risen.

-Suppose That a Consumer's Original Budget Line Was AC in Figure