Goods X and Y

question 56

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 downward sloping straight lines (rather than convex curves) ,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.

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Definitions:

Seven Years' War

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The period from January 1, 1701, to December 31, 1800, in the Gregorian calendar, marked by significant cultural, political, and technological changes worldwide.

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