A Consumer Has the Indifference Map Shown Below

question 59

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,is not) a corner solution because __________________.

• A)is; the consumer spends all income on good X to buy 50 units of X.
• B)is; the consumer spends all income on good Y to buy 50 units of Y.
• C)is not; the consumer buys 10 units of X and 40 units of Y.
• D)is not; MRS equals the slope of the budget line.
• E)is not; MRS does not equal the slope of the budget line.

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Definitions:

Avoidance Behaviors

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Chronic Condition

A long-lasting medical condition that requires ongoing management and treatment, often involving multiple health issues or diseases.

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The act of inflicting punishment on oneself as a response to one's own behavior or perceived wrongdoing.

Complex Care

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