In the diagram, assùme the consumer whose indifference curves are shown is currently in consumer equilibrium at point a. Which of the following could lead to an optimal consumption bundle on indifference curve 13? Quantity of restaurant meals 80 70 60 50 40 30 20 10 6. 8. 10 12 14 16 Quantity of rooms O A. an increase in income OB. a decrease in the price of restaurant meals OC. a decrease in the price of rooms ollof the obo

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Revealed Preferences and Budget Constraint Analysis

Revealed means “Let Out,” and Preference means “Choice”; Choice Reveals Preference.