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Good 2 Good 1 Refer to the above graph. The shift of the budget line from AB to CD is consistent with: Select one: an increas
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Answer #1

The above curve given is of a budget line equation .

Budget line represents the consumption of two type of goods .

Here the two goods are good 1 and good 2 ..

The shift and budget and only happens if there is a change in the income.

so we can see here the budget line shifted from AB To CD which causes increase in money income  

So the answer true is option B

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