Which is true of the two budget lines drawn below?
A)Line a has a higher nominal income than line b.
B)Line b and line a have the same nominal income.
C)The absolute price of good Y is greater with budget line a than with budget line b.
D)The price of good X is larger with budget line a.

Question

Which is true of the two budget lines drawn below? 
A)Line a has a higher nominal income than line b. 
B)Line b and line a have the same nominal income. 
C)The absolute price of good Y is greater with budget line a than with budget line b. 
D)The price of good X is larger with budget line a.

Quizplus · Accepted Answer

Both budget lines have the same slope and intercept, which means they have the same nominal income. The absolute prices of both goods are the same, so options C and D are incorrect.

Which Is True of the Two Budget Lines Drawn Below