The Diagram Below Shows a Set of Budget Lines Facing

question 40

Multiple Choice

The diagram below shows a set of budget lines facing a household. FIGURE 6-8
-Refer to Figure 6-8.The movement of the budget line from ab to ac could be caused by

• A)an increase in money income.
• B)an increase in the price of food.
• C)an increase in the price of housing.
• D)a decrease in the price of food.
• E)a decrease in the price of housing.

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