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
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
Chapter5: Income And Substitution Effects
Section: Chapter Questions
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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