Refer to the Diagram

question 258

Multiple Choice

Refer to the diagram. Cheri's budget line shifts inward from CD to AB. Which statement below is consistent with this shift?

• A)Both prices double, while her income also doubles.
• B)Both prices increase by 20 percent, while her income increases by 25 percent.
• C)Both prices decrease by 10 percent, while her income falls by 15 percent.
• D)Both prices decrease by 10 percent, while her income falls by 6 percent.