Goods X and Y

For the following questions, assume that good X is on the horizontal axis and good Y is on the vertical axis in the consumer-choice diagram. PX denotes the price of good X, PY is the price of good Y, and I is the consumer's income. Unless otherwise stated, the consumer's preferences are assumed to satisfy the standard assumptions.

-Refer to Goods X and Y.Which of the following would cause the vertical intercept to move upwards?
A) A decrease in the price of good Y.
B) An increase in the price of good X.
C) An increase in the price of good Y
D) A decrease in the price of good Y.

Question

Goods X and Y

For the following questions, assume that good X is on the horizontal axis and good Y is on the vertical axis in the consumer-choice diagram. PX denotes the price of good X, PY is the price of good Y, and I is the consumer's income. Unless otherwise stated, the consumer's preferences are assumed to satisfy the standard assumptions.

-Refer to Goods X and Y.Which of the following would cause the vertical intercept to move upwards?
A) A decrease in the price of good Y.
B) An increase in the price of good X.
C) An increase in the price of good Y
D)   A  decrease in the price of good Y.

Quizplus · Accepted Answer

The Answer of Goods X and Y

For the following questions, assume that good X is on the horizontal axis and good Y is on the vertical axis in the consumer-choice diagram. PX denotes the price of good X, PY is the price of good Y, and I is the consumer's income. Unless otherwise stated, the consumer's preferences are assumed to satisfy the standard assumptions.

-Refer to Goods X and Y.Which of the following would cause the vertical intercept to move upwards?
A) A decrease in the price of good Y.
B) An increase in the price of good X.
C) An increase in the price of good Y
D)   A  decrease in the price of good Y.