In the Figure Below, a Shift in the Budget Line

question 12

Multiple Choice

In the figure below, a shift in the budget line from AC to BC represents:

• A)a decrease in income.
• B)an increase in good 2's price.
• C)an increase in good 1's price.
• D)a decrease in good 2's price.
• E)a decrease in good 1's price.

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Definitions:

Course of Action

A plan, strategy, or sequence of activities designed to achieve a specific goal or outcome.

Client-Professional Privilege

A legal principle that ensures communications between a professional (such as a lawyer) and their client remain confidential.

Confidential Information

Sensitive data that is protected from unauthorized access, use, or disclosure, often in a business context.

Duty of Care

Refers to the legal obligation to exercise a reasonable level of attention and caution to avoid harm to others.