The graph shows two indifference curves, and QR and QS represent different budget lines. A change in the equilibrium position on the diagram from point 1 to point 2 could result, other things being equal, from
A)an increase in the price of B.
B)a decrease in the price of A.
C)a decrease in the consumer's money income.
D)an equal percentage increase in the consumer's money income and in the price of B.

Question

The graph shows two indifference curves, and QR and QS represent different budget lines. A change in the equilibrium position on the diagram from point 1 to point 2 could result, other things being equal, from
A)an increase in the price of B. 
B)a decrease in the price of A. 
C)a decrease in the consumer's money income. 
D)an equal percentage increase in the consumer's money income and in the price of B.

Quizplus · Accepted Answer

The Answer of  The graph shows two indifference curves, and QR and QS represent different budget lines. A change in the equilibrium position on the diagram from point 1 to point 2 could result, other things being equal, from
A)an increase in the price of B. 
B)a decrease in the price of A. 
C)a decrease in the consumer's money income. 
D)an equal percentage increase in the consumer's money income and in the price of B.

The Graph Shows Two Indifference Curves, and QR and QS