Question

In this diagram, budget line goes flatter from P1 P2 to P2 P1. The reason for budget line being flatter 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