-Suppose that a consumer used to be at point S on budget line BB' in Figure 6-5,and is now at point R on line AA'.Which of the following is true?
A)The price of X rose.
B)The price of X fell.
C)The consumer's income fell.
D)The utility level at point R is higher than at point S.
E)The substitution effect is positive.

Question

-Suppose that a consumer used to be at point S on budget line BB' in Figure 6-5,and is now at point R on line AA'.Which of the following is true?
A)The price of X rose. 
B)The price of X fell. 
C)The consumer's income fell. 
D)The utility level at point R is higher than at point S. 
E)The substitution effect is positive.

Quizplus · Accepted Answer

The Answer of 
-Suppose that a consumer used to be at point S on budget line BB' in Figure 6-5,and is now at point R on line AA'.Which of the following is true?
A)The price of X rose. 
B)The price of X fell. 
C)The consumer's income fell. 
D)The utility level at point R is higher than at point S. 
E)The substitution effect is positive.

-Suppose That a Consumer Used to Be at Point S