Assume Doug's budget constraint is represented by line C in the graph shown. Which of the following would cause Doug's budget constraint to shift to line B?
A)Doug loses his job.
B)Doug finds soda at a warehouse outlet for a lower price.
C)Doug's grocery store raises the price of milk by 10 percent.
D)Doug's grocery store lowers all prices by 33 percent.

Question

Assume Doug's budget constraint is represented by line C in the graph shown. Which of the following would cause Doug's budget constraint to shift to line B?
A)Doug loses his job. 
B)Doug finds soda at a warehouse outlet for a lower price. 
C)Doug's grocery store raises the price of milk by 10 percent. 
D)Doug's grocery store lowers all prices by 33 percent.

Quizplus · Accepted Answer

The Answer of  Assume Doug's budget constraint is represented by line C in the graph shown. Which of the following would cause Doug's budget constraint to shift to line B?
A)Doug loses his job. 
B)Doug finds soda at a warehouse outlet for a lower price. 
C)Doug's grocery store raises the price of milk by 10 percent. 
D)Doug's grocery store lowers all prices by 33 percent.

Assume Doug's Budget Constraint Is Represented by Line C in the Graph