The diagram illustrates budget lines for a consumer deciding between two goods, X and Y. At first, the budget line is MM and the consumer’s chosen point is A. Later, the money prices of both goods alter, causing the budget line to shift to NN. Which point might show the consumer’s chosen position after the price change if tastes did not change?
- Apoint A
- Bpoint B
- Cpoint C
- Dpoint D