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

Indifference curves and budget lines — practice question

In the diagram, curve JK shows the consumer’s original budget line. Which combination might make the budget line move to GH?

  • Aconsumer’s money income decrease; price of good Y decrease
  • Bconsumer’s money income decrease; price of good Y increase
  • Cconsumer’s money income increase; price of good Y decrease
  • Dconsumer’s money income increase; price of good Y increase

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