The figure below shows a consumer maximizing utility at two different prices (the left panel)and the consumer's demand for good X at the same two prices of good X (the right panel).The price of good Y is $14.When the price of X increases from point M to point N along the demand curve,the income effect of the price increase is ________.
A)175
B)180
C)-175
D)-180
E)none of the above

Question

The figure below shows a consumer maximizing utility at two different prices (the left panel)and the consumer's demand for good X at the same two prices of good X (the right panel).The price of good Y is $14.When the price of X increases from point M to point N along the demand curve,the income effect of the price increase is ________. 
A)175 
B)180 
C)-175 
D)-180 
E)none of the above

Quizplus · Accepted Answer

The Answer of The figure below shows a consumer maximizing utility at two different prices (the left panel)and the consumer's demand for good X at the same two prices of good X (the right panel).The price of good Y is $14.When the price of X increases from point M to point N along the demand curve,the income effect of the price increase is ________. 
A)175 
B)180 
C)-175 
D)-180 
E)none of the above

The Figure Below Shows a Consumer Maximizing Utility at Two