The diagram below shows a set of budget lines facing a household. FIGURE 6- 7
-Refer to Figure 6- 7. The movement of the budget line from ab to ef could be caused by
A) a decrease in money income.
B) an equal percentage increase in the price of both food and housing.
C) an equal percentage decrease in the price of both food and housing.
D) a decrease in the price of either food or housing.
E) an increase in the price of either food or housing.

Question

The diagram below shows a set of budget lines facing a household.  FIGURE 6- 7
-Refer to Figure 6- 7. The movement of the budget line from ab to ef could be caused by
A) a decrease in money income. 
B) an equal percentage increase in the price of both food and housing. 
C) an equal percentage decrease in the price of both food and housing. 
D) a decrease in the price of either food or housing. 
E) an increase in the price of either food or housing.

Quizplus · Accepted Answer

The Answer of The diagram below shows a set of budget lines facing a household.  FIGURE 6- 7
-Refer to Figure 6- 7. The movement of the budget line from ab to ef could be caused by
A) a decrease in money income. 
B) an equal percentage increase in the price of both food and housing. 
C) an equal percentage decrease in the price of both food and housing. 
D) a decrease in the price of either food or housing. 
E) an increase in the price of either food or housing.

The Diagram Below Shows a Set of Budget Lines Facing