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Figure 51 the Figure Shows a Linear Production Possibility Curve Representing

Question 30

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Figure 5.1. The figure shows a linear production possibility curve representing a tradeoff faced by a country, between necessities and luxuries​. Figure 5.1. The figure shows a linear production possibility curve representing a tradeoff faced by a country, between necessities and luxuries​.   -​Refer to figure 5.1. Under which of the following conditions, would the residents of the country choose to consume luxury goods? A) ​When there is an increase in the price of luxury goods B) ​When there is a decrease in the prices of inferior goods C) ​When there is an increase in the prices of goods that are necessities D) ​When there is an increase in the per capita income of households E) ​When there is a decrease in the per capita income of households
-​Refer to figure 5.1. Under which of the following conditions, would the residents of the country choose to consume luxury goods?


A) ​When there is an increase in the price of luxury goods
B) ​When there is a decrease in the prices of inferior goods
C) ​When there is an increase in the prices of goods that are necessities
D) ​When there is an increase in the per capita income of households
E) ​When there is a decrease in the per capita income of households

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