The following diagram shows two budget lines: A and B.
Which of the following could explain the change in the budget line from A to B?
A)A decrease in income and a decrease in the price of x.
B)A decrease in income and an increase in the price of x.
C)An increase in income and a decrease in the price of x.
D)An increase in income and an increase in the price of x.

Question

The following diagram shows two budget lines: A and B. 
Which of the following could explain the change in the budget line from A to B?
A)A decrease in income and a decrease in the price of x. 
B)A decrease in income and an increase in the price of x. 
C)An increase in income and a decrease in the price of x. 
D)An increase in income and an increase in the price of x.

Quizplus · Accepted Answer

The Answer of The following diagram shows two budget lines: A and B. 
Which of the following could explain the change in the budget line from A to B?
A)A decrease in income and a decrease in the price of x. 
B)A decrease in income and an increase in the price of x. 
C)An increase in income and a decrease in the price of x. 
D)An increase in income and an increase in the price of x.

The Following Diagram Shows Two Budget Lines: a and B