Figure 21-5

-Refer to Figure 21-5.When would it be possible for the consumer to reach I2
A)if the price of Y increased
B)if the price of X increased
C)if his income increased
D)if his preferences changed

Question

Figure 21-5
 
-Refer to Figure 21-5.When would it be possible for the consumer to reach I2
A)if the price of Y increased 
B)if the price of X increased 
C)if his income increased 
D)if his preferences changed

Quizplus · Accepted Answer

When the consumer's income increases, it shifts the budget line outward, allowing them to reach I2 along the same indifference curve. Changes in the price of X or Y or preferences would not necessarily lead to reaching I2, as they would primarily affect the slope and position of the budget line and the shape of the indifference curves, respectively.

Figure 21-5 -Refer to Figure 21-5.When Would It Be Possible for the Be