A Consumer Allocates All Income Between Two Products, a and B

question 313

Multiple Choice

A consumer allocates all income between two products, A and B. If, on an indifference map, the equilibrium position shifts onto a higher indifference curve, then

• A)the consumer must be purchasing more of both products.
• B)the relative prices of A and B must have changed.
• C)the prices of A and B must have increased.
• D)total utility must have increased.

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