Figure 10-2 Figure 10-2 Represents the Demand for Ice Cream Cones

question 147

Multiple Choice

Figure 10-2

Figure 10-2 represents the demand for ice cream cones.
-Refer to Figure 10-2.Which of the following statements is true?

• A)Points a and b are the utility-maximizing quantities of ice cream cones at two different prices of ice cream.
• B)Points a and b may not necessarily be the utility-maximizing quantities of ice cream cones at two different prices because we have no information on the consumer's budget or the price of other goods.
• C)Point a could be a utility-maximizing choice if the price is $3 but point b may not be because we have no information on the marginal utility per dollar when price changes.
• D)Points a and b are derived independently of the utility-maximizing model.

---

Definitions:

Sole Proprietorships

Sole Proprietorships are businesses owned and operated by a single individual, with no legal distinction between the owner and the business.

Sarbanes-Oxley Act

A U.S. law enacted in 2002 to protect investors from fraudulent financial reporting by corporations.

Financial Statement Fraud

Deliberate manipulation of a company's financial records to present a false picture of its financial condition.

Financial Reporting

The process of producing statements that disclose an organization's financial status to management, investors, and the government.