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    Microeconomics Study Set 11
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    Exam 6: Demand and Welfare
  5. Question
    Refer to Figure 6
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Refer to Figure 6

Question 31

Question 31

Multiple Choice

Refer to Figure 6.1.Assume that L1 represents the budget line before a price change.Which change in budget lines represents compensation? Refer to Figure 6.1.Assume that L1 represents the budget line before a price change.Which change in budget lines represents compensation?   A)  L1 to L2 B)  L2 to L3 C)  L3 to L2 D)  L1 to L3


A) L1 to L2
B) L2 to L3
C) L3 to L2
D) L1 to L3

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