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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