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 must be correct?

  • AThe price of good Y has fallen relative to the price of good X.
  • BThere has been a decrease in the price of good Y.
  • CThere has been an increase in the price of good X.
  • DThere has been an increase in the consumer’s real income.

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