The Budget Line Shift from Cd to Ab in the Below

question 249

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:

Developing Countries

Countries with a lower level of economic development, characterized by lower industrialization, lower income per capita, and often higher levels of poverty compared to developed countries.

Duties and Tariffs

Taxes imposed by governments on the import and export of goods.

Facilities

Physical buildings and infrastructures that are used for the production, handling, or storage of goods.

Supply Chain

A constellation of groups, individuals, activities, information, and supplies engaged in the process of delivering a product or service from the producer to the purchaser.