Figure 21-20 The Following Graph Illustrates a Representative Consumer's Preferences for Marshmallows

question 226

Multiple Choice

Figure 21-20
The following graph illustrates a representative consumer's preferences for marshmallows and chocolate chip cookies:
-Refer to Figure 21-20. Assume that the consumer has an income of $40. If the price of chocolate chips is $4 and the price of marshmallows is $4, the optimizing consumer would choose to purchase

• A)9 marshmallows and 6 chocolate chips.
• B)10 marshmallows and 10 chocolate chips.
• C)5 marshmallows and 5 chocolate chips.
• D)3 marshmallows and 9 chocolate chips.

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Definitions:

Productivity

The evaluation of how well a person, machine, factory, or system transforms inputs into valuable outputs.

Security

Measures taken to protect a person, organization, or property against criminal activity, attack, damage, or unauthorized access.

Adequacy

Adequacy refers to the sufficiency of something to meet a specific requirement, need, or standard, without deficiency.

Distress

Harmful stress characterized by a loss of feelings of security and adequacy