Figure 21-18
-Refer to Figure 21-18. 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 21-18 
-Refer to Figure 21-18. 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

A decrease in the price of good Y or X would increase the purchasing power of the consumer, allowing them to afford more of both goods. An increase in income would also increase the overall purchasing power of the consumer. Therefore, all of the choices would result in a shift along the budget constraint curve, making I2 reachable for the consumer.

Figure 21-18 -Refer to Figure 21-18. It Would Be Possible for the Possible