The Following Figure Shows the Indifference Curves U₁ and U₂

question 59

Multiple Choice

The following figure shows the indifference curves U₁ and U₂ of a consumer choosing between hours devoted at a tennis club and other goods.All consumers in this market have identical demand curves.IZ is the original budget line of a representative consumer,which shifts to AB when the club begins to charge an entry fee.
Figure 12-3
-Refer to Figure 12-3.What is the amount of entry fee the club is charging the consumer?

• A)OZ
• B)IA
• C)OI
• D)OA

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