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Yaho Imported From S. v Question Completion Status: C. in the figure above, 。Adecrease in the price of Good wil cause the budget constraint to move from BC1 to BC2. Assuming BC1, if the price of X is $3then the price of Y is $1.50 From the information in the graph, we cannot construct a demand curve for Good Y O Al of the above are true None of the above answers is correct Click Sove and Submit to sove and submit. Cick Sove All Answers to save all answers
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Answer #1

According to the above figure,

A decrease in the price of Good X will cause the budget constraint to move from BC1 to BC2.

When the price of good X decreases, the purchasing power of good X increases it means that due to decrease in price of a good the consumer can buy more of that good ( here good X) from the same income so he budget constraint will move outward from BC1 to BC2.

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