Refer to the above graphs.Which pairs of budget constraints represent only a decrease in the price of X,but no change in income and no change in the price of Y?
A) Graph A
B) Graph B
C) Graph C
D) Graph D

Question

Refer to the above graphs.Which pairs of budget constraints represent only a decrease in the price of X,but no change in income and no change in the price of Y?
A) Graph A 
B) Graph B 
C) Graph C 
D) Graph D

Quizplus · Accepted Answer

Graph B represents a decrease in the price of X with no change in income and no change in the price of Y because the budget constraint has shifted outward parallel to the original budget constraint. The other graphs show changes in income or in the price of Y, in addition to the decrease in the price of X.

Refer to the Above Graphs