In the diagram, line RS represents the various combinations of goods X and Y that a consumer can buy using his current income. The consumer’s initial equilibrium is at M. What could account for a shift in his equilibrium position to N?
- Aa change in his tastes
- Ba decrease in the price of X and a bigger percentage increase in the price of Y
- Can increase in the price of X and an increase in his income
- Dequal percentage increases in his income and in both prices