Moving down along a given budget line,real income
A)decreases but prices remain constant.
B)and prices are constant.
C)decreases and prices decrease.
D)increases but prices remain constant.
E)remains constant but prices decrease.

Question

Quizplus · Accepted Answer

Moving down along a given budget line implies that a consumer is choosing to buy more of one good and less of another while the total expenditure remains the same, indicating that real income (purchasing power) and prices are constant.

Moving Down Along a Given Budget Line,real Income