Use the Following to Answer Question

question 105

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 I.Given the budget constraint FL,utility:

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

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Definitions:

Payment

A financial transaction where money is transferred in exchange for goods or services.

Future Date

A specified day in the future on which an event is planned or expected to occur.

Negotiable Instrument

A document that promises to pay a certain sum of money, which can be demanded at any time or on a fixed date, and allows the beneficiary to transfer this right to someone else.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for financing immediate needs.