Refer to the graph. As the consumer equilibrium point shifts from point a to point b,
A)the consumer's purchase of good 2 decreases even though its price stays constant.
B)the slope of the budget line decreases because the price of good 1 increased.
C)the marginal utility of good 1 increases and the marginal utility of good 2 decreases.
D)the consumer's total utility decreases.

Question

Refer to the graph. As the consumer equilibrium point shifts from point a to point b,
A)the consumer's purchase of good 2 decreases even though its price stays constant. 
B)the slope of the budget line decreases because the price of good 1 increased. 
C)the marginal utility of good 1 increases and the marginal utility of good 2 decreases. 
D)the consumer's total utility decreases.

Quizplus · Accepted Answer

The Answer of  Refer to the graph. As the consumer equilibrium point shifts from point a to point b,
A)the consumer's purchase of good 2 decreases even though its price stays constant. 
B)the slope of the budget line decreases because the price of good 1 increased. 
C)the marginal utility of good 1 increases and the marginal utility of good 2 decreases. 
D)the consumer's total utility decreases.

Refer to the Graph