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The Following Diagram Shows Two Budget Lines: a and B

question 142

Multiple Choice

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:

Annuity Due

An annuity in which payments are made at the beginning of each period.

Equal Payments

Regular payments of the same amount over a specified period, often used in loan repayments or annuities.

Time Period

A specific duration marked by a start and an end point, often used to measure or track events, performance, or changes.

Ordinary Annuity

Regular payments of the same amount delivered at the close of successive intervals, across a specified timeframe.

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