Assume Alan's Budget Constraint Is Represented by Line a in the Graph

question 115

Multiple Choice

Assume Alan's budget constraint is represented by line A in the graph shown. Which of the following would cause Alan's budget constraint to move to line B?

• A)Alan experiences a drop in income.
• B)The price of books increases.
• C)Alan decides he doesn't like going to the movies as much as he used to.
• D)The price of movie tickets increases.

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Definitions:

Obsolete

describes anything that is out of date or no longer in use, often because it has been replaced by newer versions or technologies.

Judicially Decreed

Formally ordered or adjudged by a court.

State

A political entity with a centralized government that has sovereignty over a geographical area and maintains a monopoly on the legitimate use of force within that area.

Shareholder

An individual or institution that owns at least one share of a company's stock, making them a partial owner.