A Consumer Has the Indifference Map Shown Below

question 96

Multiple Choice

A consumer has the indifference map shown below.The market prices of X and Y are $20 and $12,respectively.The consumer has $1,000 to spend on goods X and Y.The utility-maximizing bundle is

• A)40 units of good X and 10 units of good Y.
• B)10 units of good X and 40 units of good Y.
• C)20 units of good X and 18 units of good Y.
• D)50 units of good X and 0 units of good Y.
• E)none of the above

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Definitions:

Dominant Tenement

A parcel of land to which a right-of-way or easement attaches for its better use.

Right of Way

The legal right, established by usage or grant, to pass along a specific route through grounds or property belonging to another.

Adverse Possession

A possessory title to land under the Registry System acquired by continuous, open, and notorious possession of land inconsistent with the title of the true owner for a period of time (usually 10 to 20 years).

Squatters Rights

Legal allowances that may permit a squatter to obtain title to land or property under certain conditions.