Exhibit 6A-7 Consumer equilibrium

-As shown in Exhibit 6A-7, movement from consumer equilibrium at point A to point B is caused by a(n):
A) increase in the price of good X.
B) decrease in the price of good X.
C) increase in the price of good Y.
D) decrease in the price of good Y.

Question

Exhibit 6A-7 Consumer equilibrium
​ 
-As shown in Exhibit 6A-7, movement from consumer equilibrium at point A to point B is caused by a(n):
A) increase in the price of good X. 
B) decrease in the price of good X. 
C) increase in the price of good Y. 
D) decrease in the price of good Y.

Quizplus · Accepted Answer

A movement from point A to point B in consumer equilibrium typically indicates a change in the price of one of the goods. A decrease in the price of good X would allow the consumer to purchase more of good X, shifting the equilibrium point.

Exhibit 6A-7 Consumer Equilibrium