Asked by
Precious Persuade
on Nov 04, 2024
Verified
Refer to Figure 6.5. Molly's budget constraint is AD. If her income decreases, her new budget constraint is
A) CD.
B) BD.
C) EF.
D) not shown on this graph.
Budget Constraint
A limitation on the consumption choices of individuals based on their income and the prices of goods and services.
Income
Regular earnings from employment or investment.
- Discuss how changes and realignments in the budget constraint express economic situations such as alterations in financial income, price modifications, and the result of substitution.
- Discern the association between monetary constraints and the options available to consumers.
Verified Answer
GR
Learning Objectives
- Discuss how changes and realignments in the budget constraint express economic situations such as alterations in financial income, price modifications, and the result of substitution.
- Discern the association between monetary constraints and the options available to consumers.