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

Indifference curves and budget lines — practice question

The diagram below illustrates a customer’s budget line for two goods, X and Y. If the price of X remains unchanged, the slope of the budget line will become steeper when:

  • Athe consumer’s income falls.
  • Bthe consumer’s income rises.
  • Cthe price of Y falls.
  • Dthe price of Y rises.

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