FIGURE 6- 8
-Refer to Figure 6- 8. In part (i), the consumer is able to move from point A to point B because of
A) a decrease in money income.
B) a decrease in the price of one good and an increase in money income.
C) a decrease in the price of bread.
D) a decrease in the price of milk.
E) an increase in real income.

Question

FIGURE 6- 8
-Refer to Figure 6- 8. In part (i), the consumer is able to move from point A to point B because of
A) a decrease in money income. 
B) a decrease in the price of one good and an increase in money income. 
C) a decrease in the price of bread. 
D) a decrease in the price of milk. 
E) an increase in real income.

Quizplus · Accepted Answer

Moving from point A to point B represents an increase in the quantity demanded of both goods, indicating an increase in real income. Therefore, option E is the correct choice. None of the other options provided would allow for an increase in real income leading to a movement from A to B.

FIGURE 6- 8 -Refer to Figure 6- 8. in Part (I), the Consumer