Figure 21-3
In each case, the budget constraint moves from BC-1 to BC-2.
-Refer to Figure 21-3. Which of the graphs in the figure could reflect a simultaneous decrease in the price of good X and increase in the price of good Y? (i)
Graph a
(ii)
Graph b
(iii)
Graph c
(iv)
Graph d
A)(ii) only
B)(iii) only
C)(ii) or (iv) only
D)None of the above is correct.

Question

Figure 21-3
In each case, the budget constraint moves from BC-1 to BC-2.    
-Refer to Figure 21-3. Which of the graphs in the figure could reflect a simultaneous decrease in the price of good X and increase in the price of good Y? (i)
Graph a
(ii)
Graph b
(iii)
Graph c
(iv)
Graph d
A)(ii) only 
B)(iii) only 
C)(ii) or (iv) only 
D)None of the above is correct.

Quizplus · Accepted Answer

The Answer of Figure 21-3
In each case, the budget constraint moves from BC-1 to BC-2.    
-Refer to Figure 21-3. Which of the graphs in the figure could reflect a simultaneous decrease in the price of good X and increase in the price of good Y? (i)
Graph a
(ii)
Graph b
(iii)
Graph c
(iv)
Graph d
A)(ii) only 
B)(iii) only 
C)(ii) or (iv) only 
D)None of the above is correct.

Figure 21-3 in Each Case, the Budget Constraint Moves from BC-1 to BC-1