Solved

Refer to the Graph

Question 286

Multiple Choice

  Refer to the graph. As the consumer equilibrium point shifts from point a to point b, A) the consumer's purchase of good 2 decreases even though its price stays constant. B) the slope of the budget line decreases because the price of good 1 increased. C) the marginal utility of good 1 increases and the marginal utility of good 2 decreases. D) the consumer's total utility decreases. Refer to the graph. As the consumer equilibrium point shifts from point a to point b,


A) the consumer's purchase of good 2 decreases even though its price stays constant.
B) the slope of the budget line decreases because the price of good 1 increased.
C) the marginal utility of good 1 increases and the marginal utility of good 2 decreases.
D) the consumer's total utility decreases.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions