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

Indifference curves and budget lines — practice question

From the diagram, a consumer’s budget line changes from JK to JH. What conclusion can be drawn with certainty from the diagram?

  • AThere has been a decrease in the price of good Y.
  • BThere has been a decrease in the consumer's money income.
  • CThere has been an increase in the consumer’s real income.
  • DThere has been no change in the price of good X.

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