Question 2 (Figure: Quarts of Milk and Jars of Honey) A shift in the budget line...

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Answer 1

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Option D
increase in the price of milk
The intercept of the budget line denotes the maximum possible affordable quantity and that decreases because of the increase in price
Maximum possible quantity =income /price
increase in the price decreases it and shifts the intercept inside.

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Answer 2

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Question 2 (Figure: Quarts of Milk and Jars of Honey) A shift in the budget line...

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Question 2 (Figure: Quarts of Milk and Jars of Honey) A shift in the budget line...

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