FIGURE 6- 10
-Refer to Figure 6- 10. The line joining points E1 and E3 is known as , which shows how
.
A) an income consumption line; consumption changes as income changes, with relative prices held constant
B) a price consumption line; consumption changes as one price changes, with money income held constant
C) a price consumption line; consumption changes as money income and relative prices change
D) an income consumption line; consumption changes with changing relative prices and constant income

Question

FIGURE 6- 10
-Refer to Figure 6- 10. The line joining points E1 and E3 is known as , which shows how
.
A) an income consumption line; consumption changes as income changes, with relative prices held constant 
B) a price consumption line; consumption changes as one price changes, with money income held constant 
C) a price consumption line; consumption changes as money income and relative prices change 
D) an income consumption line; consumption changes with changing relative prices and constant income

Quizplus · Accepted Answer

The line joining points E1 and E3 is a price consumption line, which shows how consumption changes as one price changes, with money income held constant.

FIGURE 6- 10 -Refer to Figure 6- 10. the Line Joining Points E1