Use the Following to Answer Question

question 122

Multiple Choice

Use the following to answer question:
-(Figure: Consumer Equilibrium IV) Use Figure Consumer Equilibrium IV.Assume that you are consuming the combination of goods at point K.Given the budget constraint FL,utility:

• A)can be increased by consuming more nights in a hotel room and fewer train tickets.
• B)can be increased by consuming fewer nights in a hotel room and more train tickets.
• C)can be increased by consuming more of both goods.
• D)cannot be increased.

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Definitions:

Income

The total amount of money earned or received by an individual or group, typically within a specified period, from work, investments, or other sources.

Marginal Tax Rate

The rate at which the last dollar of a taxpayer's income is taxed, illustrating the impact of the next dollar of earned income on their tax liability.

Average Tax Rate

The ratio of the total amount of taxes paid to the total taxable income, showing the percentage of income that goes to taxes.

Taxable Income

The portion of an individual's or a corporation's income that is subject to taxes by governmental authorities.