Suppose Red Onions Are on the Horizontal Axis and White

question 8

Multiple Choice

Suppose red onions are on the horizontal axis and white onions on the vertical axis.If both are perfect substitutes with two white onions worth one red onion,and the price of red onions falls from four to three times the price of white onions,the consumer:

• A)decreases her consumption of white onions and increases her consumption of red onions.
• B)increases her consumption of white onions and decreases her consumption of white onions.
• C)moves to a higher indifference curve
• D)makes no change in his/her consumption of onions and experiences no income effect as a result of the price change.

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