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 equilibrium points X and Y:
A) result from a decrease in the price of good X.
B) are two points along a downward sloping demand curve for good X.
C) result from a decrease in the consumer's budget.
D) result from a decrease in the price of good Y.

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 equilibrium points X and Y:
A) result from a decrease in the price of good X. 
B) are two points along a downward sloping demand curve for good X. 
C) result from a decrease in the consumer's budget. 
D) result from a decrease in the price of good Y.

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 equilibrium points X and Y:
A) result from a decrease in the price of good X. 
B) are two points along a downward sloping demand curve for good X. 
C) result from a decrease in the consumer's budget. 
D) result from a decrease in the price of good Y.