Economics 9708 · AS & A Level · Indifference curves and budget lines

Indifference curves and budget lines — practice question

In the diagram, a consumer’s budget line moves from GH to JK. Which statement has to be correct?

  • AThe price of good X has increased relative to the price of good Y.
  • BThe prices of both goods have fallen.
  • CThere has been an increase in the consumer’s real income.
  • DThere has been an increase in the consumer’s money income.

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