- In the diagram above, Cheri's budget line shifts outward from AB to CD. Which statement below is consistent with this shift?
A) Both prices double; her income doubles.
B) Her income is reduced; no change in either price.
C) Both prices are reduced by 50 percent; her income is reduced by less than 50 percent.
D) Both the price of good 1 and Cheri's income increase; there is no change in the price of good

Question

- In the diagram above, Cheri's budget line shifts outward from AB to CD. Which statement below is consistent with this shift?
A) Both prices double; her income doubles. 
B) Her income is reduced; no change in either price. 
C) Both prices are reduced by 50 percent; her income is reduced by less than 50 percent. 
D) Both the price of good 1 and Cheri's income increase; there is no change in the price of good

Quizplus · Accepted Answer

The Answer of 
- In the diagram above, Cheri's budget line shifts outward from AB to CD. Which statement below is consistent with this shift?
A) Both prices double; her income doubles. 
B) Her income is reduced; no change in either price. 
C) Both prices are reduced by 50 percent; her income is reduced by less than 50 percent. 
D) Both the price of good 1 and Cheri's income increase; there is no change in the price of good

- in the Diagram Above, Cheri's Budget Line Shifts Outward