The Below Indifference Map Shows the Various Combinations of Hours

question 89

Multiple Choice

The below indifference map shows the various combinations of hours of music and apples that yield different levels of utility.Figure 7.1

-Suppose a budget line is drawn with X on the horizontal axis and Y on the vertical axis. A decrease in the price of X will cause:

• A)an increase in the vertical intercept and no change in the horizontal intercept.
• B)a decrease in the vertical intercept and no change in the horizontal intercept.
• C)an increase in the horizontal intercept and no change in the vertical intercept.
• D)a decrease in the horizontal intercept and no change in the vertical intercept.
• E)a parallel, rightward shift of the budget line.

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