[2pts] Tobias's budget line has changed from Budget Line A to Budget Line B in the...

Transcribed Image Text:

[2pts] Tobias's budget line has changed from Budget Line A to Budget Line B in the graph below. Which of the following scenarios may explain the change in Tobias's budget line? Scenario: I. Tobias's income doubled, but the price of diamond cream and blue paint remained unchanged. II. III. Both Tobias's income and the price of the diamond doubled, but the price of blue paint remained unchanged. Both Tobias's income and the price of diamond cream remained unchanged, but the price of blue paint reduced by 50%. Diamond Cream 100 A) Only Scenario I B) Only Scenario Il C) Only Scenario III D) Both Scenarios I and II E) Both Scenarios II and III Budget Line A 50 Blue Paint Budget Line B 100 [2pts] Tobias's budget line has changed from Budget Line A to Budget Line B in the graph below. Which of the following scenarios may explain the change in Tobias's budget line? Scenario: I. Tobias's income doubled, but the price of diamond cream and blue paint remained unchanged. II. III. Both Tobias's income and the price of the diamond doubled, but the price of blue paint remained unchanged. Both Tobias's income and the price of diamond cream remained unchanged, but the price of blue paint reduced by 50%. Diamond Cream 100 A) Only Scenario I B) Only Scenario Il C) Only Scenario III D) Both Scenarios I and II E) Both Scenarios II and III Budget Line A 50 Blue Paint Budget Line B 100

Answer rating: 100% (QA)

The detailed answer for the above question is provided below C Scenario III Explanation T... View the full answer