Multiple Choice
The following figure shows a portion of a consumer's indifference map and budget lines.The price of good Y is $7 and the consumer's income is $700.Let the consumer begin in utility-maximizing equilibrium at point A on indifference curve I.Next the price of good X changes so that the consumer moves to a new utility-maximizing equilibrium at point B on indifference curve II.The income effect of the change in the price of X is
A) +12
B) +10
C) -10
D) +32
E) +42
Correct Answer:

Verified
Correct Answer:
Verified
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