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Figure 21-4

Question 2

Multiple Choice

Figure 21-4 Figure 21-4 -Refer to Figure 21-4.Assume that a consumer faces both budget constraints in graph (a) and graph (b) on two different occasions.If her income has remained constant,what has happened to prices? A) The price of X in graph (a) is higher than the price of X in graph (b) . B) The price of Y in graph (a) is higher than the price of Y in graph (b) . C) The prices of both X and Y are lower in graph (a) . D) None of the above is true.
-Refer to Figure 21-4.Assume that a consumer faces both budget constraints in graph (a) and graph (b) on two different occasions.If her income has remained constant,what has happened to prices?


A) The price of X in graph (a) is higher than the price of X in graph (b) .
B) The price of Y in graph (a) is higher than the price of Y in graph (b) .
C) The prices of both X and Y are lower in graph (a) .
D) None of the above is true.

Correct Answer:

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