Exhibit a -Refer to Exhibit A. Suppose That the Consumer Must Choose

question 25

Multiple Choice

Exhibit A

-Refer to Exhibit A. Suppose that the consumer must choose between buying socks and belts. Also, suppose that the consumer's income is R1 000. If the price of a belt is R100 and the price of a pair of socks is R50, the consumer will choose to buy the commodity bundle represented by point?

• A) Z
• B) X
• C) Y
• D) the optimal point cannot be determined from this graph.

---

Definitions:

Global Financial Panic

A worldwide period of financial instability characterized by widespread fear and withdrawal of investment.

Aggregate Supply

The total supply of goods and services that firms in an economy plan to sell during a specific time period at various price levels.

Aggregate Demand

The total demand for final goods and services in an economy at a given time, encompassing consumption, investment, government spending, and net exports.

September 2008

A significant month marking the peak of the financial crisis of 2008, characterized by the collapse of Lehman Brothers and a global economic downturn.