An Indifference Map Shows the Optimal Consumption Bundle of a Consumer

question 67

Multiple Choice

An indifference map shows the optimal consumption bundle of a consumer for two goods A and B.Which of the following factors would lead to a parallel shift of the budget line allowing the consumer to reach a higher indifference curve?

• A)A fall in the price of good A
• B)A parallel outward shift of the consumer's indifference curve
• C)An increase in the consumer's income
• D)A fall in the price of good B

---

Definitions:

Probability

The quantification of the probability of an event happening, represented by a numerical value ranging from 0 to 1.

Central Limit Theorem

A statistical theory stating that the distribution of sample means approximates a normal distribution as the sample size becomes sufficiently large.

Sample Mean

The average of a sample set of numbers, calculated by adding up all the numbers and dividing by the count of numbers in the set.

Sample Mean

The average value of a sample set of numbers.