Question

In this diagram, budget line goes flater from $P_1 P_2 \,to \,P_2 P^{'}_1$ . The reason for budget line being flater is:

• A. No change Goods-B price.
• B. Goods-B price increases
• C. Goods-B price decreases
• D. Goods-A price decreases

Answer 1

Answer: (C)

Goods-B price decreases

Answer 2

The correct option is (C) :Goods-B price decreases