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

Indifference curves and budget lines — practice question

The diagram illustrates budget lines for normal goods X and Y. What might cause the budget line to move from PQ to PR?

  • Aprice of X: fall; price of Y: rise; level of consumer incomes: fall
  • Bprice of X: no change; price of Y: rise; level of consumer incomes: no change
  • Cprice of X: rise; price of Y: no change; level of consumer incomes: no change
  • Dprice of X: rise; price of Y: no change; level of consumer incomes: rise

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