Arrange the following statements showing the change in budget set due to change in income. (A) The equation of the budget line is P_1 X_1 + P_2 X_2 = M. (B) Consumer's income increases from M to M', but the price of goods remains constant. (C) The set of available bundles depends upon prices and the income of the consumer. (D) Consumers can buy more of the goods at the prevailing market prices. Choose the correct answer from the options given below:

Question

Arrange the following statements showing the change in budget set due to change in income. (A) The equation of the budget line is P_1 X_1 + P_2 X_2 = M. (B) Consumer's income increases from M to M', but the price of goods remains constant. (C) The set of available bundles depends upon prices and the income of the consumer. (D) Consumers can buy more of the goods at the prevailing market prices. Choose the correct answer from the options given below: Option 1: (A), (B), (C), (D) Option 2: (B), (A), (C), (D) Option 3: (B), (A), (D), (C) Option 4: (C), (B), (D), (A)

AfterBoards · Accepted Answer

The answer is '(C), (B), (D), (A)'. View full solution:

List-I	List-II
(A) Slope of Budget line	(I) $P_1X_1 + P_2X_2 \leq M$
(B) Horizontal intercept of budget line	(II) $M/P_2$
(C) Vertical intercept of budget line	(III) $-\frac{P_1}{P_2}$
(D) Budget constraints	(IV) $M/P_1$

CUET Economics 2025 3 June Shift 2 PYQs

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