Refer to the Following Indifference Map for a Consumer Who

question 30

Multiple Choice

Refer to the following indifference map for a consumer who has an income of $48 to spend on goods X and Y and the market prices of X and Y are both $4: After the price of good X increases to $12 while the price of good Y remains $4,how many units of good X would be purchased?

• A)0
• B)2
• C)4
• D)8
• E)12

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Definitions:

Urethral Sphincter

A muscle that controls the release of urine from the bladder.

Ureteral Valves

Flap-like structures in the ureters that prevent the backflow of urine from the bladder into the kidneys.

Cost-Of-Living Index

Ratio of the present cost of a typical bundle of consumer goods and services compared with the cost during a base period.

Utility Level

A gauge of the pleasure or fulfillment obtained by a customer through the use of goods and services.