Graph 22-7

-Refer to Graph 22-7. Assume that the consumer depicted in the graph faces prices and income such that she optimises at pointA. According to the graph, what change allows the consumer to move to point B?
A) a decrease in the price of M&Ms
B) an increase in the price of M&Ms
C) an increase in the price of Skittles
D) a decrease in the price of Skittles

Question

Graph 22-7
 
-Refer to Graph 22-7. Assume that the consumer depicted in the graph faces prices and income such that she optimises at pointA. According to the graph, what change allows the consumer to move to point B?
A) a decrease in the price of M&Ms 
B) an increase in the price of M&Ms 
C) an increase in the price of Skittles 
D) a decrease in the price of Skittles

Quizplus · Accepted Answer

A decrease in the price of M&Ms would allow the consumer to purchase more M&Ms for the same amount of money, shifting the budget line outward and enabling the consumer to move to point B.

Graph 22-7 -Refer to Graph 22-7. Assume That the Consumer Depicted in the Consumer