Use the Following Figure to Answer the Question : Figure

question 81

Multiple Choice

Use the following figure to answer the question : Figure 12-3 : 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.

-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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