Use the Following to Answer Questions 16-17

question 9

Multiple Choice

Use the following to answer questions 16-17:
Figure 13.3
-(Figure 13.3) The figure shows budget constraints and indifference curves for a representative individual. Identify the income effect of the increase in the wage rate in the associated graph.

• A) C to B
• B) B to C
• C) A to C
• D) A to B

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Definitions:

Preference Shares

A class of ownership in a corporation with a fixed dividend, having priority over common shares in asset liquidation and dividends.