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

question 57

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.Good X is a(an) ___________ good but not a _________ good.

• A)normal; substitute
• B)normal; Giffen
• C)inferior; Giffen
• D)Giffen; normal
• E)Giffen; substitute

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Definitions:

Transportation Strategy

The plan and execution for moving goods from one location to another efficiently, often considering factors such as cost, speed, and environmental impact.

Competitive Strategy

A business plan that companies use to achieve a competitive advantage, typically by defining how they will compete against rivals in areas such as price, quality, and innovation.

Cost Minimization

The process of reducing expenses to the lowest possible level while still achieving the desired level of production or activity.

Profit Maximization

Refers to the process or strategy focused on increasing the net profit of a business by either increasing revenue, reducing costs, or both.