Exhibit 6A-5 Consumer Equilibrium

question 144

Multiple Choice

Exhibit 6A-5 Consumer Equilibrium
​

Given the budget lines and indifference curves shown in Exhibit 6A-5, if the budget line shifts from AB to AC, then the equilibrium points X and Y:

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

---

Definitions:

Specific Performance

A court order to perform the exact terms of a contract, rather than paying damages for failing to meet the terms.

Commercial Impracticability

A legal doctrine that excuses a party from performing its contractual obligations due to unforeseen events that make performance exceedingly difficult or expensive.

Earthquake

A natural phenomenon characterized by the shaking of the earth's surface, typically resulting from the movement of tectonic plates beneath the earth's crust.

Building Material

Materials used in the construction of buildings and structures, including wood, concrete, steel, bricks, and glass.