### Budget Line Analysis#### Graph ExplanationThis graph illustrates budget lines on a Cartesian plane with the x-axis labeled X and the y-axis labeled Y. Each budget line represents different combinations of two goods (X and Y) that a consumer can purchase, given their budget constraints.- **Axes:** - **X-axis:** Ranges from 0 to 8. - **Y-axis:** Ranges from 0 to 400.- **Budget Lines:** - **B1:** Starts at (0, 300) and ends at (6, 0). - **B2:** Starts at (0, 150) and ends at (3, 0). - **B3:** Starts at (0, 200) and ends at (4, 0). - **B4:** Starts at (0, 350) and ends at approximately (7, 0).#### Question03. The change in the budget line from B1 to B2 was caused by:- (a) an increase in the consumer's budget- (b) a same percentage decrease in the prices of both goods- (c) a decrease in the price of Y- (d) a decrease in the price of X- (e) an increase in the price of XThis question asks for an analysis of what might cause the shift from the budget line B1 to B2, focusing on potential changes in budget or prices of the goods.

400 350 300 Y 250 200 150 100 50 B4 B3 B1 B2 0 X 0 1 2 3 4 5 6 7 8 03. The change in the budget line from B1 to B2 was caused by: O(a) an increase in the consumer's budget (b) a same percentage decrease in the prices of both goods O (c) a decrease in the price of Y O (d) a decrease in the price of X O(e) an increase in the price of X

400 350 300 Y 250 200 150 100 50 B4 B3 B1 B2 0 X 0 1 2 3 4 5 6 7 8 03. The change in the budget line from B1 to B2 was caused by: O(a) an increase in the consumer's budget (b) a same percentage decrease in the prices of both goods O (c) a decrease in the price of Y O (d) a decrease in the price of X O(e) an increase in the price of X

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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