The diagrams illustrate a consumer’s indifference curves (IC) and budget lines (BL) for an inferior good as well as a normal good. Which diagram shows the outcome of a reduction in income tax on the consumer’s choice?
- ADiagram A
- B[IMAGE:9708_w20_qp_32_p3_diagram_4]
- C[IMAGE:9708_w20_qp_32_p3_diagram_3]
- D[IMAGE:9708_w20_qp_32_p3_diagram_2]