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JAMB Economics 2023 Objective — Question 15

Question 15 of 40 from the Joint Admissions and Matriculation Board (JAMB) Economics 2023 Objective paper, with the correct answer and a full explanation.

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To move the equilibrium point from e₁ to e₂, the

  • A. (A) producer must produce more
  • B. (B) consumer must increase his budget for X and YCorrect
  • C. (C) consumer and producer must add to their budgets
  • D. (D) consumer must increase budget for X

Explanation

Moving to a higher indifference curve (from e₁ to e₂) requires the consumer to increase their budget for both X and Y, shifting the budget line outward.

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