The following figure shows a portion of a consumer's indifference map and budget lines.The price of good Y is $17 and the consumer's income is $7,650.Let the consumer begin in utility-maximizing equilibrium at point A on indifference curve II.Next the price of good X changes so that the consumer moves to a new utility-maximizing equilibrium at point B on indifference curve I.The income effect of the change in the price of X is
A)50
B)100
C)150
D)-100
E)-150

Question

The following figure shows a portion of a consumer's indifference map and budget lines.The price of good Y is $17 and the consumer's income is $7,650.Let the consumer begin in utility-maximizing equilibrium at point A on indifference curve II.Next the price of good X changes so that the consumer moves to a new utility-maximizing equilibrium at point B on indifference curve I.The income effect of the change in the price of X is 
A)50 
B)100 
C)150 
D)-100 
E)-150

Quizplus · Accepted Answer

The Answer of The following figure shows a portion of a consumer's indifference map and budget lines.The price of good Y is $17 and the consumer's income is $7,650.Let the consumer begin in utility-maximizing equilibrium at point A on indifference curve II.Next the price of good X changes so that the consumer moves to a new utility-maximizing equilibrium at point B on indifference curve I.The income effect of the change in the price of X is 
A)50 
B)100 
C)150 
D)-100 
E)-150

The Following Figure Shows a Portion of a Consumer's Indifference