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The Following Diagram Shows Two Budget Lines: a and B

question 331

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:

Privity

The direct relationship between parties to a contract, conferring rights and obligations.

Warranties

Legal guarantees provided by the seller regarding the quality or performance of a product or service.

Implied Warranty

An implied warranty is a legal term for the assurances that are not explicitly stated but that the law infers that goods are fit for their intended purpose.

Subsequent Purchasers

Individuals or entities that acquire property after the first or original owner, subject to existing rights or covenants.

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