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Economics (AS & A Level) · May / June 2025 · Paper 32 · Question 1

9708Indifference curves and budget lines

The diagram shows budget lines for an individual consumer. What could explain the shift in the budget line from QR to ST?

  1. Aa decrease in the consumer's real income
  2. Ba decrease in the quality of both goods
  3. Can increase in the consumer's money income
  4. Dan increase in the price of both goods

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Correct answer: C. an increase in the consumer's money income

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