CFA Practice Question

There are 891 practice questions for this topic.

CFA Practice Question

The following figure shows Bobby's indifference map for soda and juice. B1 indicates his original budget line. B2 indicates his budget line resulting from a decrease in the price of soda. What change in quantity best represents his income effect?

A. 3
B. 7
C. 10
Explanation: 25 - 18 = 7

User Contributed Comments 2

User Comment
Hamad333_1 why not 10?
xemex131 10 is the total effect, substitution + income
You need to log in first to add your comment.