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

Indifference curves and budget lines — practice question

In the diagram, the consumer’s original budget line is JK. If the price of X stays unchanged, what might account for the consumer’s budget line moving to GH?

  • Aprice of good Y: decrease; consumer’s money income: decrease
  • Bprice of good Y: decrease; consumer’s money income: increase
  • Cprice of good Y: increase; consumer’s money income: decrease
  • Dprice of good Y: increase; consumer’s money income: increase

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