Refer to the information provided in Figure 6.3 below to answer the question(s) that follow. Figure 6.3
-Refer to Figure 6.3. Molly's budget constraint is AC. It would swivel to AD if the price of
A) DVDs increased.
B) DVDs decreased.
C) CDs increased.
D) CDs decreased.

Question

Refer to the information provided in Figure 6.3 below to answer the question(s) that follow.  Figure 6.3
-Refer to Figure 6.3. Molly's budget constraint is AC. It would swivel to AD if the price of
A) DVDs increased. 
B) DVDs decreased. 
C) CDs increased. 
D) CDs decreased.

Quizplus · Accepted Answer

When the price of DVDs decreases, Molly can afford more DVDs for the same amount of money, causing the budget constraint to swivel outward from A to D, indicating that DVDs have become relatively cheaper compared to CDs.

Refer to the Information Provided in Figure 6