Refer to the following indifference map for a consumer who has an income of $48 to spend on goods X and Y and the market prices of X and Y are both equal to $4:

-After the price of good X increases to $12 while the price of good Y remains $4, how many units of good X would be purchased?
A) 0
B) 2
C) 4
D) 8
E) 12

Question

Refer to the following indifference map for a consumer who has an income of $48 to spend on goods X and Y and the market prices of X and Y are both equal to $4:
 
-After the price of good X increases to $12 while the price of good Y remains $4, how many units of good X would be purchased?
A) 0 
B) 2 
C) 4 
D) 8 
E) 12

Quizplus · Accepted Answer

Without additional information about the consumer's budget, preferences, or the demand curve for good X, it's impossible to determine the exact number of units purchased. However, if the price increase makes good X unaffordable or less desirable, the consumer might purchase 0 units.

Refer to the Following Indifference Map for a Consumer Who