Use the following to answer questions
Figure: Budget Lines for Tea and Scones 
-(Figure: Budget Lines for Tea and Scones) Look at the figure Budget Lines for Tea and Scones. For months now, Agnes has had $20 per month to spend on tea and scones. The price of each cup of tea and each scone has been $1. Which of the charts shows what will happen to her budget line if her income decreases to $10?
Definitions:
Stock Dividend
A stock dividend is a payment made in the form of additional shares of the company's stock rather than cash.
Shares Outstanding
Shares outstanding refer to the total number of shares of a corporation's stock that are owned by shareholders at any given time, including those held by institutional investors and restricted shares held by insiders.
Reverse Stock Split
A corporate action where a company reduces its total number of shares outstanding, thereby increasing the value of each remaining share.
Market Price
The present cost at which a service or asset is available for purchase or sale in the financial marketplace.
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