Assume Claudia's budget constraint is demonstrated by line A in the graph shown.Which of the following would cause Claudia's budget constraint to shift to line C?
A) Claudia's income increased.
B) Claudia's income decreased.
C) Claudia's preferences for these two goods decreased.
D) The prices of both goods have gone down.

Question

Assume Claudia's budget constraint is demonstrated by line A in the graph shown.Which of the following would cause Claudia's budget constraint to shift to line C?
A) Claudia's income increased. 
B) Claudia's income decreased. 
C) Claudia's preferences for these two goods decreased. 
D) The prices of both goods have gone down.

Quizplus · Accepted Answer

The Answer of  Assume Claudia's budget constraint is demonstrated by line A in the graph shown.Which of the following would cause Claudia's budget constraint to shift to line C?
A) Claudia's income increased. 
B) Claudia's income decreased. 
C) Claudia's preferences for these two goods decreased. 
D) The prices of both goods have gone down.

Assume Claudia's Budget Constraint Is Demonstrated by Line a in the Graph