B) The diagram below shows indifference curves and budget lines. The initial budget line is A:B1. Use the information provided in the diagram to answer the questions that follow. Aa IC, 7 B В B Units of Good X i. The consumer prefers to be on which indifference curve? Explain your answer. ii. Which combinations - a, b, c, d, e, f, and g - of goods X and Y indicates consumer equilibrium? Explain your answer. i Has price of good X increased or decreased? Explain your answer. A poob jo sun

B) The diagram below shows indifference curves and budget lines. The initial budget line is A:B1. Use the information provided in the diagram to answer the questions that follow. Aa IC, 7 B В B Units of Good X i. The consumer prefers to be on which indifference curve? Explain your answer. ii. Which combinations - a, b, c, d, e, f, and g - of goods X and Y indicates consumer equilibrium? Explain your answer. i Has price of good X increased or decreased? Explain your answer. A poob jo sun

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter6: Consumer Choice Theory

Section6.A: Indifference Curve Analysis

Problem 10SQ

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