Figure 21-3 -Refer to Figure 21-3.Assume That a Consumer Faces Both Budget

question 182

Multiple Choice

Figure 21-3

-Refer to Figure 21-3.Assume that a consumer faces both budget constraints in graph (a) and graph (b) on two different occasions.If her income has remained constant,what has happened to prices

• A)The price of X in graph (a) is higher than the price of X in graph (b).
• B)The price of Y in graph (a) is higher than the price of Y in graph (b).
• C)The prices of both X and Y are lower in graph (a).
• D)The prices of both X and Y are lower in graph (b).

---

Definitions:

Economic Growth

is the increase in the inflation-adjusted market value of the goods and services produced by an economy over time.

19th Century

the period from January 1, 1801, to December 31, 1900, marked by significant industrial, social, and political changes worldwide.

GNI Per Capita

Gross National Income per capita is a measure dividing the country's GNI by its population, providing an average economic income per person.

Purchasing Power

The quantity and quality of goods and services that can be bought with a unit of currency.