Figure: the Optimal Consumption Bundle (Figure: the Optimal Consumption

question 185

Multiple Choice

Figure: The Optimal Consumption Bundle (Figure: The Optimal Consumption Bundle) Look at the figure The Optimal Consumption Bundle.In the figure, which of the following could lead to an optimal consumption bundle on indifference curve I3?

• A)a decrease in income
• B)an increase in the price of restaurant meals
• C)a decrease in the price of rooms
• D)an increase in the price of rooms

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Definitions:

Adhesion

The property of sticking to some other substance. Compare with cohesion.

Capillary Action

The ability of water to move in small-diameter tubes as a consequence of its cohesive and adhesive properties.

Surface Tension

The attraction that the molecules at the surface of a liquid may have for one another.

Osmosis

The net movement of water (the principal solvent in biological systems) by diffusion through a selectively permeable membrane from a region of higher concentration of water (a hypotonic solution) to a region of lower concentration of water (a hypertonic solution).