The following graph lustrates the combination of apples and oranges (point A) that maximizes Yolanda's total utility, given her budget. Suppose the price of oranges doubles, while the price of apples...

Extracted text: The following graph lustrates the combination of apples and oranges (point A) that maximizes Yolanda's total utility, given her budget. Suppose the price of oranges doubles, while the price of apples and Yolanda's income both stay the same. 55 Use the line drawing tool to drawa new budget constraint to reflect the increase in the price of oranges. Label this line BC 50 45- Recal the assumptions regarding consumer preferences listed at the beginning of the appendix 40 35 8 30 Assume that consumers are able to rank difforent combinations of goods and services in terms of how much utility they provide. Also, assume that the consumer's preferences are transitive. A 25 20- IC Use the three point drawing tool to draw a new indifference curve to refiect the new optimal combination of goods apples and oranges now that the price of oranges has doubled. Label this line 1C 15- 10- Carefully follow the instructions above, and only draw the required objects. 19 s 20 2 30 3s 40 45 so 5s 60 Quantity of apples What would have to be true to cause the new equilibrium to have more oranges than the original equilibrium point? If oranges are OA an inferior good and the income effect is larger than the substitution effect O B. an inferior good and the income effect is smaller than the substtution effect Oc a normal good and the income effect is smaller than the substitution effect O D. a normal good and the incomo effect is larger than the substitution effect