passwella.
Menu

JAMB Economics 2006 Question 19

Question 19

Theory of Consumer Behaviour

Use the diagram below to answer questions 19 and 20. A movement from K to M will

Diagram for this question
  1. A.increase the price of the commodity
  2. B.leave the consumer's utility unchanged
  3. C.decrease the consumer's utility
  4. D.increase the consumer's utility
Show the answer and explanation

Answer: B (leave the consumer's utility unchanged)

Explanation

K and M lie on the same indifference curve (I), and every point on one indifference curve gives the same satisfaction.