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

Indifference curves and budget lines — practice question

The diagram illustrates two indifference curves for a consumer. What can be concluded when the consumer’s equilibrium shifts from Q to R?

  • AThe consumer is acting rationally.
  • BThe consumer’s money income is unchanged.
  • CThe opportunity cost of good Y is constant.
  • DThe price of good X has risen.

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