In the diagram, KN is a budget line showing the different combinations of two normal goods, X and Y, that a consumer is able to purchase. A consumer initially chooses point L on the budget line.
In a subsequent period, the consumer chooses the combination of X and Y shown by point M.
What could explain this change?

a change in the consumer’s preferences
2 )
an increase in the consumer’s income and an increase in the price of Y
3 )
a reduction in the consumer’s income
4 )
a reduction in the consumer’s income and a reduction in the price of X
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