Referring to the graph below (Figure 2) showing a consumer's initial budget line (labeled BO) and...

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Referring to the graph below (Figure 2) showing a consumer's initial budget line (labeled BO) and new budget line (labeled B1) for two goods, X and Y, and two different indifference curves (IC1- IC2). Figure 2 Consider the shift in the budget line from B0 to B1. Which of the following is true? O a. The price of good Y decreased. O b. The price of good Y increased. The price of good X increased. O d. The price of good X decreased. Referring to the graph below (Figure 2) showing a consumer's initial budget line (labeled BO) and new budget line (labeled B1) for two goods, X and Y, and two different indifference curves (IC1- IC2). Figure 2 Consider the shift in the budget line from B0 to B1. Which of the following is true? O a. The price of good Y decreased. O b. The price of good Y increased. The price of good X increased. O d. The price of good X decreased.

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The budget line shows all the possible combination of the two good which a consumer can b... View the full answer