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The Consumer Faces a Budget Constraint Because the Market Price

Question 23

Multiple Choice

The consumer faces a budget constraint because the market price of X is $3,the market price of Y is $3,and the consumer's budget is $90.In order for this consumer to choose the corner solution at point E,which of the following must occur? The consumer faces a budget constraint because the market price of X is $3,the market price of Y is $3,and the consumer's budget is $90.In order for this consumer to choose the corner solution at point E,which of the following must occur?   A) price of X must rise to $6. B) price of Y must rise to $6. C) price of X must rise to $9. D) price of Y must rise to $9.


A) price of X must rise to $6.
B) price of Y must rise to $6.
C) price of X must rise to $9.
D) price of Y must rise to $9.

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