Figure 21-6

-Refer to Figure 21-6.It would be possible for the consumer to reach I₂ if
A)the price of Y decreases.
B)the price of X decreases.
C)income increases.
D)All of the above would be correct.

Question

Figure 21-6
 
-Refer to Figure 21-6.It would be possible for the consumer to reach I₂ if
A)the price of Y decreases. 
B)the price of X decreases. 
C)income increases. 
D)All of the above would be correct.

Quizplus · Accepted Answer

According to the diagram, reaching point I₂ requires a combination of both X and Y goods. Therefore, a decrease in the price of one or both goods (A and B) would make it more affordable for the consumer to purchase both and reach I₂. Additionally, an increase in income (C) would lead to an increase in the affordability of both goods and also make it possible to purchase both and reach I₂. Thus, all of the above (A, B, and C) would be correct.

Figure 21-6 -Refer to Figure 21-6.It Would Be Possible for the Consumer