FIGURE 6-9
-Refer to Figure 6-9.In part (i),the consumer is able to move from point A to point B because of
A)a decrease in the price of milk.
B)a decrease in the price of bread.
C)a decrease in money income.
D)an increase in real income.
E)a decrease in the price of one good and an increase in money income.

Question

FIGURE 6-9
-Refer to Figure 6-9.In part (i),the consumer is able to move from point A to point B because of
A)a decrease in the price of milk. 
B)a decrease in the price of bread. 
C)a decrease in money income. 
D)an increase in real income. 
E)a decrease in the price of one good and an increase in money income.

Quizplus · Accepted Answer

Moving from point A to point B indicates an increase in quantity demanded of both milk and bread, which can only occur due to an increase in real income. This means the consumer can afford to purchase more of both goods at the same or higher prices.

FIGURE 6-9 -Refer to Figure 6-9.In Part (I),the Consumer Is Able to Able