The Figure Below Shows a Consumer Maximizing Utility at Two

question 85

Multiple Choice

The figure below shows a consumer maximizing utility at two different prices (the left panel) and the consumer's demand for good X at the same two prices of good X (the right panel) .The price of good Y is $14.At point N on the demand curve for X,the price of X is $____.

• A)$48
• B)$50
• C)$56
• D)$60
• E)$64

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Definitions:

Mere Exposure Effect

A psychological phenomenon whereby people tend to develop a preference for things merely because they are familiar with them.

Self-Fulfilling Prophecy

A belief or expectation that influences behavior in a way that causes the belief to become true.

Social Trap

A situation in which the conflicting parties, by each pursuing their self-interest rather than the good of the group, become caught in mutually destructive behavior.

McMaster University

A public research university located in Hamilton, Ontario, Canada, known for its innovative educational practices.