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Economics (AS & A Level) · May / June 2022 · Paper 33 · Question 5

9708Indifference curves and budget lines

The diagram shows five budget lines. Line 1 is the original budget line. [diagram: budget lines with axes food and drink, lines labelled 1, 2, 3, 4, 5] Which pair of budget lines shows a relatively higher price for drink compared with food after a move from budget line 1?

  1. A2 and 3
  2. B2 and 4
  3. C3 and 5
  4. D4 and 5

As printed in the paper

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Correct answer: C. 3 and 5

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