The diagram presents the indifference curves (IC) for a consumer for goods X and Y, along with the consumer’s budget lines (BL). If the budget line moves from BL1 to BL2, what does this imply about the consumer’s preferences for goods X and Y while prices stay unchanged?
- AHe continues to buy the same amounts of X and Y.
- BHe prefers to buy fewer of X and fewer of Y.
- CHe prefers to buy fewer of X and more of Y.
- DHe prefers to buy more of X and fewer of Y.