To move from point M to K; the consumer has to increase the?

A. consumption of X and reduce the consumption of Y
B. expenditure on Y
C. expenditure on X
D. consumption of Y and reduce the consumption of X

Correct Answer:

Option D – consumption of Y and reduce the consumption of X

Explanation

At point M, the consumer consumes more of X, to move to point K, the consumer needs to consumer more of Y and less of X. Point K is the point of equilibrium where the combination of K=M