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?
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?
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?
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