Economics 9708 · AS & A Level · Indifference curves and budget lines

Indifference curves and budget lines — practice question

In the indifference curve diagram, point M shows the consumer’s starting equilibrium, JK and JL represent budget lines, and MN is the substitution effect of a decrease in the price of good X. If good X is a Giffen good, which point will be the consumer’s new equilibrium point after the price of good X falls?

  • APoint K
  • BPoint L
  • CPoint J
  • DPoint I

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI