Post Utme Igbinedion University 2020 Economics Question 29

Practice objective / multiple choice question 29 from the 2020 Post Utme Igbinedion University Economics examination.

Post Utme Igbinedion University 2020 Economics Objective / Multiple Choice
Question 29 POST_UTME_IGBINEDION_UNIVERSITY • 2020 • ECONOMICS • objective

Consider a consumer with an indifference curve that is downward-sloping and convex to the origin. If the consumer's income increases by 20% and the price of the good decreases by 15%, what is the likely effect on the consumer's optimal consumption bundle?

Answer Options

Correct Answer A. The consumer will consume more of the good.
B. The consumer will consume less of the good.
C. The consumer's optimal consumption bundle will remain unchanged.
D. The consumer will switch to a different good.
Correct Answer
A
Correct Option:
The consumer will consume more of the good.

About This Question

This is Post Utme Igbinedion University 2020 Economics Question 29. It is one of the objective questions from the 2020 Post Utme Igbinedion University Economics examination.

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