Use the following to answer question:
-(Figure: Budget Lines for Tea and Scones)Use 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 chart shows what will happen to her budget line if her income decreases to $10?
A)A
B)B
C)C

Question

Use the following to answer question: 
-(Figure: Budget Lines for Tea and Scones)Use 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 chart shows what will happen to her budget line if her income decreases to $10?
A)A 
B)B 
C)C

Quizplus · Accepted Answer

When Agnes's income decreases from $20 to $10, her budget line will shift inward, parallel to the original line, indicating she can now afford fewer tea and scones. Chart C represents this inward shift.

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