Figure 21-10
-Refer to Figure 21-10.Assume that the consumer depicted in the figure faces prices and income such that she optimizes at point B.According to the graph,which of the following would cause the consumer to move to point A?
A) a decrease in the price of Skittles
B) a decrease in the price of M&M's
C) an increase in the price of Skittles
D) an increase in the price of M&M's

Question

Figure 21-10 
-Refer to Figure 21-10.Assume that the consumer depicted in the figure faces prices and income such that she optimizes at point B.According to the graph,which of the following would cause the consumer to move to point A?
A) a decrease in the price of Skittles 
B) a decrease in the price of M&M's 
C) an increase in the price of Skittles 
D) an increase in the price of M&M's

Quizplus · Accepted Answer

An increase in the price of M&M's would cause the consumer to move to point A, as it would make M&M's relatively more expensive, leading the consumer to buy fewer M&M's and more of the other good, Skittles.

Figure 21-10 -Refer to Figure 21-10.Assume That the Consumer Depicted in the Depicted