Use the Following to Answer Question(s): Consumer Equilibrium 2

question 79

Multiple Choice

Use the following to answer question(s) : Consumer Equilibrium 2

-(Exhibit: Consumer Equilibrium 2) Given the exhibit, which of the following is (are) true?

• A) To increase utility beyond that received at point I requires a change in the preferences of the consumer.
• B) Point J could be attained with an increase in the consumer's budget.
• C) An increase in the prices of good X and good Y would allow the consumer to attain point J.
• D) Both A and B are true.

---

Definitions:

Face Value

The face value or the amount in dollars shown on a bond, note, or any financial instrument, representing its value upon reaching maturity.

Current Yield

A financial ratio that calculates the annual interest or dividends received from an investment as a percentage of the current market price.

Coupon

The face value percentage that represents the yearly interest payment on a bond.

Semiannually

Occurring or conducted twice a year; typically refers to payments, reports, or evaluations made every six months.