Graph 22-5 -Refer to Graph 22-5. It will be possible for the consumer to reach I₂ if: A) the price of Y decreases B) the price of X decreases C) income increases D) all of the above are correct

Question

Quizplus · Accepted Answer

According to the graph, shifting the IS1 curve to the right will cause the consumer to reach point U1. This can occur if income increases or if the price of Y decreases (shifting the IC1 curve down and to the right). Similarly, shifting the IC1 curve down and to the right by decreasing the price of X will also lead to the consumer reaching point U1. Therefore, all of the above options are correct.

Graph 22-5 -Refer to Graph 22-5. It Will Be Possible for the Be