Exhibit 6A-6 Consumer Equilibrium

question 34

Multiple Choice

Exhibit 6A-6 Consumer equilibrium
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-Given the budget lines and indifference curves shown in Exhibit 6A-6, if the budget line shifts, then the equilibrium points X and Y:

• A) result from a decrease in the price of good X.
• B) result from a decrease in the consumer's budget.
• C) are two points along a downward sloping demand curve for good X.
• D) result from a decrease in the price of good Y.

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Definitions:

Conformity

Changing or adopting a behavior or an attitude in an effort to be consistent with the social norms of a group or the expectations of other people.

Compliance

Acting in accordance with the direct requests of other people.

Obedience

Behaving in accordance with the rules and commands of those in authority.

Halo Effect

A cognitive bias where the perception of a particular trait is influenced by the perception of former traits in a sequence of interpretations.