The Figure Below Shows a Consumer Maximizing Utility at Two

question 8

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 $4.50.The equation of the budget line passing through point r is _______________.

• A)Y = 80 - (10/3)X
• B)Y = 90 - (10/3)X
• C)Y = 80 - 0.3X
• D)Y = 90 - 0.3X

---

Definitions:

Bona Fide Purchaser

A person who buys something in good faith without notice of any previous claim or lien against the property.

Good Title

A rightful or legitimate claim to the ownership of property or legal recognition of the ownership of property.

Security Interest

A legal claim or right on property as collateral to secure the performance of an obligation, usually the repayment of a debt.