Refer to the Above Graph

question 85

Multiple Choice

Refer to the above graph.The shift of the budget line from CD to AB is consistent with:

• A) a decrease in money income.
• B) an increase in money income.
• C) an increase in the price of Good 1 and no change in the price of Good 2.
• D) a decrease in the price of Good 2 and no change in the price of Good 1.

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