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

Indifference curves and budget lines — practice question

In the diagram, a consumer’s budget line moves from GH to JK. Which statement has to be correct?

  • AThere has been an increase in the consumer’s real income.
  • BThere has been a decrease in the consumer’s real income.
  • CGood Y has become relatively more expensive.
  • DGood X has become relatively more expensive.

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