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

Indifference curves and budget lines — practice question

With a fixed income, a consumer may buy two goods, X and Y. What would cause the consumer’s budget line to shift parallel to the right?

  • Aconsumer’s income 10% decrease; price of good X 20% decrease; price of good Y 10% decrease
  • Bconsumer’s income 10% decrease; price of good X 20% decrease; price of good Y 20% decrease
  • Cconsumer’s income 10% increase; price of good X 10% increase; price of good Y 20% decrease
  • Dconsumer’s income 10% increase; price of good X 20% increase; price of good Y 20% increase

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