The blue budget line is for an income of $1000, P=$5 and Py=$10. At point A. the person is evenly dividing his income between purchases of good X and Y. At point B, the person is buying 20 units of Good X. Good X GoodY O f the person moves from Bundle B to Bundle H, the person is shifting income come purchasing Good X to Good Y while keeping total expenditures constant O if the person moves from Bundle B to Bundle H, the person is shifting income come purchasing Good Y to Good X while keeping total expenditures constant At Bundle H. the person is buying less than 20 units of Good X. O At Bundle H. the person is buying less than 20 units of Good Y.
The blue budget line is for an income of $1000, P=$5 and Py=$10. At point A. the person is evenly dividing his income between purchases of good X and Y. At point B, the person is buying 20 units of Good X. Good X GoodY O f the person moves from Bundle B to Bundle H, the person is shifting income come purchasing Good X to Good Y while keeping total expenditures constant O if the person moves from Bundle B to Bundle H, the person is shifting income come purchasing Good Y to Good X while keeping total expenditures constant At Bundle H. the person is buying less than 20 units of Good X. O At Bundle H. the person is buying less than 20 units of Good Y.
Chapter6: Consumer Choice Theory
Section6.A: Indifference Curve Analysis
Problem 10SQ
Related questions
Question
Transcribed Image Text:The blue budget line is for an income of $1000, Px=$5 and Py-$10.
At point A the person is evenly dividing his income between purchases of
good X and Y.
At point B, the person is buying 20 units of Good X.
Good X
Good Y
O If the person moves from Bundle B to Bundle H, the person is shifting income
come purchasing Good X to Good Y while keeping total expenditures constant
O If the person moves from Bundle B to Bundle H, the person is shifting income
come purchasing Good Y to Good X while keeping total expenditures constant
V At Bundle H, the person is buying less than 20 units of Good X.
O At Bundle H., the person is buying less than 20 units of Good Y.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning