Assume Claudia's Budget Constraint Is Demonstrated by Line a in the Graph

question 33

Multiple Choice

Assume Claudia's budget constraint is demonstrated by line A in the graph shown.Which of the following would cause Claudia's budget constraint to shift to line C?

• A) Claudia's income increased.
• B) Claudia's income decreased.
• C) Claudia's preferences for these two goods decreased.
• D) The prices of both goods have gone down.

---

Definitions:

Spanish Inquisition

The Spanish Inquisition was an institution that sought to enforce Catholic orthodoxy within Spain, famously through rigorous trials and persecutions from the late 15th to early 19th centuries.

Islamic Moors

Refers to the Muslim inhabitants of the Maghreb, the Iberian Peninsula, Sicily, and Malta during the Middle Ages.

Jews

An ethnoreligious group originating from the Israelites or Hebrews of the ancient Middle East, characterized by a common heritage, religion (Judaism), and culture.

Holy League

An alliance of Christian states formed at various times in history, often to oppose Muslim forces.