Hari draws an indifference map between two goods A and B, and marks in points to show the combinations of A and B that he would buy if the prices of A and B remained the same but his income increased. Which of the following statements is false   O a. The line is called an income consumption curve   Ob. The line will always slope upwards to the right if both products are normal goods   O C. The line will slope backwards or downwards at income levels where one product is an inferior good D.The line is called the budget line

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter5: Income And Substitution Effects
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Problem 5.14P
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Hari draws an indifference map between two goods A and B, and marks in points to show the combinations of A and B that he would buy if the prices of A and B remained the same but his income increased. Which of the following statements is false

 

O a. The line is called an income consumption curve

 

Ob. The line will always slope upwards to the right if both products are normal goods

 

O C. The line will slope backwards or downwards at income levels where one product is an inferior good

D.The line is called the budget line

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