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-Suppose That a Consumer Used to Be at Point S

Question 105

Multiple Choice

-Suppose that a consumer used to be at point S on budget line BB' in Figure 6-5,and is now at point R on line AA'.Which of the following is true? A) The price of X rose. B) The price of X fell. C) The consumer's income fell. D) The utility level at point R is higher than at point S. E) The substitution effect is positive.
-Suppose that a consumer used to be at point S on budget line BB' in Figure 6-5,and is now at point R on line AA'.Which of the following is true?


A) The price of X rose.
B) The price of X fell.
C) The consumer's income fell.
D) The utility level at point R is higher than at point S.
E) The substitution effect is positive.

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