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

Indifference curves and budget lines — practice question

The diagram illustrates a consumer’s indifference curves (IC) for goods F and G, along with the consumer’s budget lines. What could explain the shift from X to Z on the diagram?

  • Aa fall in the price of G when G is an inferior good
  • Ba fall in the price of G when F is a Giffen good
  • Ca fall in the price of G when G is a normal good
  • Da fall in the price of G when G is a Giffen good

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