Figure 22-3In each case, the budget constraint moves from BC1 to BC2.Graph (a) Graph (b) Graph (c) Graph (d) Refer to Figure 22-3. Which of the graphs in the figure could reflect an increase in income?Group of answer choicesGraph (d)Graph (b)Graph (a)None of the graphs reflects an increase in income.
Question
Figure 22-3In each case, the budget constraint moves from BC1 to BC2.Graph (a) Graph (b) Graph (c) Graph (d) Refer to Figure 22-3. Which of the graphs in the figure could reflect an increase in income?Group of answer choicesGraph (d)Graph (b)Graph (a)None of the graphs reflects an increase in income.
Solution
Without the actual visual representation of Figure 22-3, it's impossible to accurately determine which graph reflects an increase in income. However, generally, an increase in income would be represented by an outward shift of the budget constraint line. This is because with more income, a person can afford to buy more of both goods. So, you would look for the graph where BC2 is further from the origin than BC1.
Similar Questions
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