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The Following Diagram Shows Two Budget Lines: a and B

question 303

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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 simultaneous decrease in the price of X and the price of Y B) an increase in income C) a decrease in income and a decrease in the price of Y D) Both a and b are correct. Which of the following could explain the change in the budget line from A to B?


Definitions:

Apples

A common fruit that is grown worldwide and comes in various varieties, often consumed fresh, cooked, or juiced.

Pears

A type of fruit known for its sweet taste, bell shape, and variety of colors and sizes.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision to pursue a particular action or resource allocation.

Doghouses

Small shelters or buildings designed specifically for dogs to provide them with a sense of security and protection from various environmental conditions.

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