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

Indifference curves and budget lines — practice question

The diagram illustrates budget lines for an individual consumer. What might account for the movement in the budget line from QR to ST?

  • Aa decrease in the consumer’s real income
  • Ba decrease in the quality of both goods
  • Can increase in the consumer’s money income
  • Dan increase in the price of both goods

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