Figure 21-5

question 173

Multiple Choice

Figure 21-5
(a) (b)
-Refer to Figure 21-5. In graph (a) , if income is equal to $200, then the price of good X is

• A) $12.
• B) $16.
• C) $20.
• D) $24.

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Definitions:

Utility Function

A utility function is a mathematical representation of a consumer's preference ranking for different bundles of goods, showing the level of satisfaction for each.

Wealth

A substantial amount of monetary assets or physical valuables that are capable of being changed into a format usable for trading purposes.

Utility Function

A mathematical representation of how a consumer ranks different bundles of goods according to their level of satisfaction or utility.

Risk Averse

A description of an investor or decision-maker who prefers to avoid risk, choosing options with potentially lower returns but lesser risks.