In the diagram, RS represents a consumer’s budget line. At first, the consumer selects combination M on this budget line and later moves to combination N. What might account for the shift from point M to point 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