Refer to the Following Indifference Map for a Consumer Who

question 55

Multiple Choice

Refer to the following indifference map for a consumer who has an income of $48 to spend on goods X and Y and the market prices of X and Y are both $4: Now suppose the price of good X increases to $12 while the price of good Y remains $4.Utility will be maximized on which indifference curve?

• A)I
• B)II
• C)III
• D)On an indifference curve below I

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