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.

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Definitions:

Cultural Diffusion

The spread of cultural beliefs and social activities from one group to another, blending and integrating different cultural practices.

Production

Is the human capacity to make and use the tools and technology that improve our ability to take what we want from nature.

Rationalization

The process of making tasks or workflows more efficient by implementing standardized procedures and methodologies, often associated with the bureaucratization and modernization of organizations.

Independent Variable

In research, a variable that is manipulated or categorized to observe its effect on a dependent variable.