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

Indifference curves and budget lines — practice question

In the diagram, the consumer's budget line moves from GH to JK. Which statement is correct?

  • AThere has been a decrease in the price of both X and Y.
  • BThere has been an increase in the consumer’s money income.
  • CThere has been no change in the price of X or Y.
  • DThere has been no change in the price of X relative to the price of Y.

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