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
Definitions:
Externalities
Financial repercussions impacting bystanders who are not directly involved, which can be beneficial or detrimental.
Efficient Level
Efficient Level refers to the optimal amount of production or activity that maximizes benefits or utility while minimizing costs or waste.
Impose a Tax
The act of a governing body levying a financial charge or other levy upon a taxpayer, which can affect individuals, entities, or transactions.
Efficient Amount
The optimal level of production or consumption where resources are utilized in the most effective manner without waste.
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