Figure 62 Figure 6

question 26

Multiple Choice

Figure 6.2 Figure 6.2 represents the demand for ice cream cones.
-Refer to Figure 6.2.Which of the following statements is true?

• A)Points a and b are the utility-maximising quantities of ice cream cones at two different prices of ice cream.
• B)Points a and b may not necessarily be the utility-maximising 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-maximising 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-maximising model.

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Definitions:

Sociology

The scientific study of society, social relationships, social interactions, and culture that surrounds everyday life.

Diverse Society

A community characterized by a variety of different cultural, ethnic, racial, and social backgrounds.

Capitalism

An economic system based on private ownership and the free market, characterized by the pursuit of profit.

Lumpenproletariat

A term coined by Marx to describe the class of outcasts in society, such as the unemployed and criminals, who are not involved in industrial production.