Exhibit 6A-5 Consumer Equilibrium

Given the budget lines and indifference curves shown in Exhibit 6A-5, if the budget line shifts from AB to AC, then the:
A) price of good Y has increased.
B) price of good X has decreased.
C) price of good X has increased.
D) consumer's budget has decreased.

Question

Exhibit 6A-5 Consumer Equilibrium
​

Given the budget lines and indifference curves shown in Exhibit 6A-5, if the budget line shifts from AB to AC, then the:
A) price of good Y has increased. 
B) price of good X has decreased. 
C) price of good X has increased. 
D) consumer's budget has decreased.

Quizplus · Accepted Answer

The Answer of Exhibit 6A-5 Consumer Equilibrium
​

Given the budget lines and indifference curves shown in Exhibit 6A-5, if the budget line shifts from AB to AC, then the:
A) price of good Y has increased. 
B) price of good X has decreased. 
C) price of good X has increased. 
D) consumer's budget has decreased.