Examlex

Solved

The Following Diagram Shows Two Budget Lines: a and B

question 425

Multiple Choice

The following diagram shows two budget lines: A and B. The following diagram shows two budget lines: A and B.   Which of the following could explain the change in the budget line from A to B? A)  a decrease in the price of X B)  an increase in the price of Y C)  a decrease in the price of Y D)  More than one of the above could explain this change. Which of the following could explain the change in the budget line from A to B?


Definitions:

Budget Line

A graphical depiction of all possible combinations of two goods that a consumer can afford given their income and the prices of the goods.

Private Schools

Schools that operate independently of the public school system, often funded through tuition fees, private contributions, and endowments.

Public School

A school that is funded and run by the government and provides free education to students.

Budget Constraint

The limit on the consumption bundles that a consumer can afford given the prices of goods and the consumer's income.

Related Questions