Figure 4A -The indifference map in Figure 4A illustrates the effect of a: A)price decrease in x₁. B)price increase in x₂. C)change in the consumer's income. D)price decrease in x₂.

Question

Quizplus · Accepted Answer

The indifference map in Figure 4A illustrates the effect of a price decrease in x₁. This is because the indifference curves are now closer together, indicating that the consumer is willing to give up less of x₂ to get more of x₁.

Figure 4A -The Indifference Map in Figure 4A Illustrates the Effect of the Effect