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

Indifference curves and budget lines — practice question

The consumer’s income rises from $80 to $120, and at the same time the prices of X and Y also change. If the consumer’s budget line is now RS, what are the new prices of X and Y?

  • Aprice of X $4; price of Y $12
  • Bprice of X $6; price of Y $10
  • Cprice of X $10; price of Y $8
  • Dprice of X $12; price of Y $6

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