The following figure shows a portion of a consumer's indifference map and budget lines.The price of good Y is $7 and the consumer's income is $700.Let the consumer begin in utility-maximizing equilibrium at point A on indifference curve I.Next the price of good X changes so that the consumer moves to a new utility-maximizing equilibrium at point B on indifference curve II.The total effect of the change in the price of X is
A)+12
B)+10
C)-10
D)+32
E)+42

Question

The following figure shows a portion of a consumer's indifference map and budget lines.The price of good Y is $7 and the consumer's income is $700.Let the consumer begin in utility-maximizing equilibrium at point A on indifference curve I.Next the price of good X changes so that the consumer moves to a new utility-maximizing equilibrium at point B on indifference curve II.The total effect of the change in the price of X is 
A)+12 
B)+10 
C)-10 
D)+32 
E)+42

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 $7 and the consumer's income is $700.Let the consumer begin in utility-maximizing equilibrium at point A on indifference curve I.Next the price of good X changes so that the consumer moves to a new utility-maximizing equilibrium at point B on indifference curve II.The total effect of the change in the price of X is 
A)+12 
B)+10 
C)-10 
D)+32 
E)+42

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