The Budget Line Shift from Cd to Ab in the Below

question 158

Multiple Choice

The budget line shift from cd to ab in the below figure is consistent with:

• A) decreases in the prices of both M and N.
• B) an increase in the price of M and a decrease in the price of N.
• C) a decrease in money income.
• D) an increase in money income.

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Definitions:

Payment Terms

The conditions under which a seller will complete a sale, often specifying the period allowed to a buyer to pay off the amount due.

Amount Owing

The total sum of money that is currently due or outstanding.

Invoice

A statement provided by a seller to a buyer that outlines the details of a transaction and asks for payment.

Payment Terms

The terms that dictate when a seller will finalize a transaction, usually detailing the timeframe a buyer is granted to settle the owed amount.