Figure 3.2.2 -Refer to Figure 3.2.2 Above. Which of the Following Could

question 80

Multiple Choice

Figure 3.2.2
-Refer to Figure 3.2.2 above. Which of the following could have caused the shift of the budget line?

• A) An increase in income
• B) An increase in the price of food
• C) A decrease in the price of clothing
• D) An increase in the preference for both goods

---

Definitions:

Price Charged

The amount of money demanded by a seller for a product or service.

Perfectly Competitive

A market structure characterized by many buyers and sellers, homogenous products, and free entry and exit, leading to efficient pricing and output levels.

Organic

Pertaining to or derived from living organisms, in food production referring to practices that do not use synthetic pesticides or fertilizers.

Profit

The profit achieved when the revenue generated from a business operation surpasses the expenses, costs, and taxes needed to maintain the operation.