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-(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 the price of both a cup of tea and a scone increase to $2?
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 the price of both a cup of tea and a scone increase to $2?
A)A 
B)B 
C)C

Quizplus · Accepted Answer

When the price of both tea and scones increase to $2, Agnes' budget line will shift inward as she will not be able to purchase as many cups of tea and scones with her limited budget of $20. The budget line in Chart C shows a shift inward, reflecting the impact of the price increase.

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