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Use the Indifference Curves and the Budget Lines in Figure

question 67

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Use the indifference curves and the budget lines in Figure 19.3 to answer the indicated question.Assume the price of Y is $1 per unit.In Figure 19.3,given an income of $30 and a price for good Y of $1,which of the following two points represent optimal consumption? Use the indifference curves and the budget lines in Figure 19.3 to answer the indicated question.Assume the price of Y is $1 per unit.In Figure 19.3,given an income of $30 and a price for good Y of $1,which of the following two points represent optimal consumption?   A) A when the price of X is $3 and C when the price of X is $1. B) B when the price of X is $1 and D when the price of X is $3. C) A when the price of X is $1 and D when the price of X is $3. D) B when the price of X is $1 and C when the price of X is $3.


Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded for it.

Downward-Sloping

A term used to describe a line or curve on a graph that moves from the upper left to the lower right, often associated with the demand curve in economics.

Complements

Goods and services that are used together, where the consumption or use of one increases the demand for the other.

Normal Goods

Goods for which demand increases as consumer income rises, holding prices constant.

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