Refer to the graphs shown, which show indifference curve analysis with the associated demand curves. The best explanation for a movement from point D to point E is:
A) an outward rotation of the budget constraint along the x-axis, allowing the consumer to move from point A to point B.
B) a parallel shift of the budget constraint, allowing the consumer to move from point A to point C.
C) an inward rotation of the budget constraint along the x-axis, forcing the consumer to move from point B to point A.
D) an inward rotation of the budget constraint along the y-axis, forcing the consumer to move from point C to point B.

Question

Refer to the graphs shown, which show indifference curve analysis with the associated demand curves.  The best explanation for a movement from point D to point E is:
A) an outward rotation of the budget constraint along the x-axis, allowing the consumer to move from point A to point B. 
B) a parallel shift of the budget constraint, allowing the consumer to move from point A to point C. 
C) an inward rotation of the budget constraint along the x-axis, forcing the consumer to move from point B to point A. 
D) an inward rotation of the budget constraint along the y-axis, forcing the consumer to move from point C to point B.

Quizplus · Accepted Answer

The Answer of Refer to the graphs shown, which show indifference curve analysis with the associated demand curves.  The best explanation for a movement from point D to point E is:
A) an outward rotation of the budget constraint along the x-axis, allowing the consumer to move from point A to point B. 
B) a parallel shift of the budget constraint, allowing the consumer to move from point A to point C. 
C) an inward rotation of the budget constraint along the x-axis, forcing the consumer to move from point B to point A. 
D) an inward rotation of the budget constraint along the y-axis, forcing the consumer to move from point C to point B.

Refer to the Graphs Shown, Which Show Indifference Curve Analysis