Goods X and Y

question 3

Multiple Choice

Goods X and Y

For the following questions, assume that good X is on the horizontal axis and good Y is on the vertical axis in the consumer-choice diagram. PX denotes the price of good X, PY is the price of good Y, and I is the consumer's income. Unless otherwise stated, the consumer's preferences are assumed to satisfy the standard assumptions.

-Refer to Goods X and Y.If the indifference curves are horizontal,then we can conclude that

• A) X does not affect the individual's utility.
• B) Y does not affect the individual's utility.
• C) both X and Y affect the individual's utility.
• D) neither good affects the individual's utility.