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

Indifference curves and budget lines — practice question

The diagram illustrates two indifference curves and two budget lines for goods X and Y. The consumer’s chosen final position is point H. What is represented by the shift from G to H?

Athe income effect of a price fall for X
Bthe price effect of a price change for X
Cthe substitution effect of a price fall for X
Dthe substitution effect of a price rise for X

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