Bundle J Contains 10 Units of Good X and 5

question 301

Multiple Choice

Bundle J contains 10 units of good X and 5 units of good Y. Bundle K contains 5 units of good X and 10 units of good Y. Bundle L contains 10 units of good X and 10 units of good Y. Assume that the consumer's preferences satisfy the four properties of indifference curves. The price of X is $1, the price of Y is $2, and the consumer has an income of $20. Which bundle will the consumer choose?

• A)bundle J
• B)bundle K
• C)bundle L
• D)either bundle J or bundle K

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Definitions:

Great Depression

A severe worldwide economic downturn that took place during the 1930s, marked by high unemployment, widespread poverty, and deflation.

Prohibition

A period in American history, specifically from 1920 to 1933, during which the manufacture, sale, and transportation of alcoholic beverages was legally prohibited.

Noble Experiment

A term that refers to the period of prohibition in the United States during the 1920s and early 1930s intended to reduce crime and corruption, improve health, and improve social morals.