The Following Figure Shows a Portion of a Consumer's Indifference

question 95

Multiple Choice

The following figure shows a portion of a consumer's indifference map and budget lines.The price of good Y is $17 and the consumer's income is $7,650.Let the consumer begin in utility-maximizing equilibrium at point A on indifference curve II.Next the price of good X changes so that the consumer moves to a new utility-maximizing equilibrium at point B on indifference curve I.The total effect of the change in the price of X is

• A)50
• B)100
• C)150
• D)-100
• E)-150

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Definitions:

Fair Housing Act

A United States law passed in 1968 aimed at eliminating discrimination in the sale, rental, and financing of housing based on race, religion, national origin, or sex.

Exemption

A provision that removes a legal obligation or liability, often seen in tax laws, allowing certain incomes or transactions to be free from tax.

Single-family Homes

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The power of a government to take private property for public use, with compensation to the owner.