-In the above figure, if income is $8, the initial price of a soft drink is $1, and the initial price of a milkshake is $2, a decrease in the price of a milkshake to $1 will move the consumer from point ________ to point ________.
A) a; b
B) b; c
C) a; d
D) a; c

Question

-In the above figure, if income is $8, the initial price of a soft drink is $1, and the initial price of a milkshake is $2, a decrease in the price of a milkshake to $1 will move the consumer from point ________ to point ________.
A) a; b 
B) b; c 
C) a; d 
D) a; c

Quizplus · Accepted Answer

When the price of a milkshake decreases from $2 to $1, the consumer can afford more milkshakes with the same income, shifting the budget line outward. This change allows the consumer to move from point a to point c, where they can purchase more milkshakes while still maintaining their consumption of soft drinks.

-In the Above Figure, If Income Is $8, the Initial