-Refer to Exhibit 3-2

question 37

Multiple Choice

-Refer to Exhibit 3-2. Which figure illustrates goods for which the consumer has nonconvex preferences?

• A) (a)
• B) (b)
• C) (c)
• D) (d)

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Definitions:

Express

To show, manifest, or reveal something through words, gestures, actions, or artistic expression.

Proportion

A portion, fraction, or quantity assessed in relation to its total entity.

Business

An organization or enterprising entity engaged in commercial, industrial, or professional activities.

Consumer Price Index

An index measuring the change in the price level of a basket of consumer goods and services purchased by households.