In the figure above, an increase in income would result in the ...

[plus1]

In the figure above, an increase in income would result in the budget line
 
  A) making a parallel shift toward point a.
  B) making a parallel shift toward point c.
  C) becoming flatter.
  D) becoming steeper.

Question 2

If an external cost exists, then who bears the external cost in an unregulated competitive market transaction?
 
  A) nobody
  B) the federal government
  C) someone other than the producers
  D) the buyers of the product

[JCABRERA33]

Answer to Question 1

B

Answer to Question 2

C

[plus1]

Thanks for the timely response, appreciate it

[rachel]

Gracias!