In the Following Graph the Consumer's Income Is $1,200

question 11

Multiple Choice

In the following graph the consumer's income is $1,200.At point B,

• A)the rate at which the consumer is willing to substitute X for Y is greater than it is at point A.
• B)the consumer is willing to give up more Y in order to gain an extra unit of X than at point A.
• C)the consumer will receive more Y for each unit of X exchanged in the market than at point A.
• D)both a and b
• E)all of the above

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Definitions:

Profit

The financial gain achieved when the amount earned from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Harvest

The process or period of gathering in crops.

Life Tenant

An individual who has the right to use and benefit from property during their lifetime, but cannot sell or transfer the property.

Extract Minerals

The process of removing solid minerals from the earth, which are then used in various industries and products.