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Figure: Consumer Equilibrium II
-(Figure: Consumer Equilibrium II) Look at the figure Consumer Equilibrium II. Which of the following is TRUE?
A) To increase utility beyond that received at point I requires an increase in the price of olive oil.
B) Point J could be attained with an increase in Ashyra's income.
C) An increase in the prices of olive oil and dish soap would allow Ashyra to attain point J.
D) To increase utility beyond that received at point I requires an increase in the price of dish soap.

Question

Use the following to answer questions:
Figure: Consumer Equilibrium II 
-(Figure: Consumer Equilibrium II) Look at the figure Consumer Equilibrium II. Which of the following is TRUE?
A) To increase utility beyond that received at point I requires an increase in the price of olive oil. 
B) Point J could be attained with an increase in Ashyra's income. 
C) An increase in the prices of olive oil and dish soap would allow Ashyra to attain point J. 
D) To increase utility beyond that received at point I requires an increase in the price of dish soap.

Quizplus · Accepted Answer

An increase in Ashyra's income would shift the budget line outward, allowing her to reach a higher indifference curve and attain point J, thus increasing her utility.

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