Multiple Choice
In order to identify a consumer's demand curve from an optimal choice diagram we:
A) change the consumer's income, holding the prices of both goods constant, and identify the baskets the consumer chooses with each income level.
B) change the price's of both goods, holding income constant, and identify the baskets the consumer chooses with each price level.
C) change the price of one good, holding income and the price of the other good constant, and identify the baskets the consumer chooses with each price level.
D) change the price of one good and then change the income level so that the consumer achieves the same level of utility as before the price change and then identify the optimal consumption baskets at each price level.
Correct Answer:

Verified
Correct Answer:
Verified
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