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Question

A shift in the budget line, when prices are constant, is due to

A
change in demand
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B
change in income
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C
change in preferences
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D
change in utility
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Solution

The correct option is B change in income
A budget line shows different combination of two goods, which a consumer can attain, given his income and market price of the goods. Therefore, any shift in the budget line, when prices are constant will be due to change in income of the consumer.

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