Given the budget lines and indifference curves shown in Exhibit 6A-7, if the budget line shifts, then the equilibrium points X and Y:
A) are equal in total utility.
B) result from a decrease in the consumer's budget.
C) result from a decrease in the price of good Y.
D) are two points along a downward sloping demand curve for good X.
Correct Answer:
Verified
Q262: Exhibit 6A-7 Consumer equilibrium Q263: As one moves down and along a Q264: Exhibit 6A-7 Consumer equilibrium Q265: A budget line represents all combinations of Q266: Each point along an indifference curve represents Q268: Indifference curves that are farther from the Q269: Indifference curve analysis is based on a Q270: Indifference curve slopes upward from left to Q271: Indifference curves that are closest to the Q272: Indifference curve analysis is based on numerical
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