In the diagram above,Cheri's budget line shifts outward from AB to CD.Which statement below is consistent with this shift?
A) Both prices double;her income doubles.
B) Her income is reduced;no change in either price.
C) Both prices are reduced by 50 percent;her income is reduced by less than 50 percent.
D) Both the price of good 1 and Cheri's income increase;there is no change in the price of good 2.

Question

In the diagram above,Cheri's budget line shifts outward from AB to CD.Which statement below is consistent with this shift?
A) Both prices double;her income doubles. 
B) Her income is reduced;no change in either price. 
C) Both prices are reduced by 50 percent;her income is reduced by less than 50 percent. 
D) Both the price of good 1 and Cheri's income increase;there is no change in the price of good 2.

Quizplus · Accepted Answer

The Answer of  In the diagram above,Cheri's budget line shifts outward from AB to CD.Which statement below is consistent with this shift?
A) Both prices double;her income doubles. 
B) Her income is reduced;no change in either price. 
C) Both prices are reduced by 50 percent;her income is reduced by less than 50 percent. 
D) Both the price of good 1 and Cheri's income increase;there is no change in the price of good 2.

In the Diagram Above,Cheri's Budget Line Shifts Outward from AB