Figure 21-9 -Refer to Figure 21-9.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

Quizplus · Accepted Answer

According to the graph, the consumer can reach I₂ through a combination of X and Y goods that are affordable at their given prices and within the budget constraint. Therefore, any decrease in the price of either X or Y, or an increase in income, would expand the budget set and consequently allow the consumer to reach I₂. Hence, all of the above choices would be correct.

Figure 21-9 -Refer to Figure 21-9.It Would Be Possible for the Consumer