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In the Graph Above, a Is the Initial Budget Line

Question 5

Multiple Choice

In the graph above, A is the initial budget line and B is the new budget line. Which of the following changes might have occurred? A) P<sub>1</sub> was unchanged, P<sub>2</sub> increased, income decreased. B) P<sub>1</sub> decreased, P<sub>2</sub> increased, income was unchanged. C) P<sub>1</sub> increased, P<sub>2</sub> decreased, income was unchanged. D) P<sub>1</sub> decreased, P<sub>2</sub> was unchanged, income increased. In the graph above, A is the initial budget line and B is the new budget line. Which of the following changes might have occurred?


A) P1 was unchanged, P2 increased, income decreased.
B) P1 decreased, P2 increased, income was unchanged.
C) P1 increased, P2 decreased, income was unchanged.
D) P1 decreased, P2 was unchanged, income increased.

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