Figure 21-20 The Following Graph Illustrates a Representative Consumer's Preferences for Marshmallows

question 232

Multiple Choice

Figure 21-20
The following graph illustrates a representative consumer's preferences for marshmallows and chocolate chip cookies:
-Refer to Figure 21-20. Assume that the consumer has an income of $100 and currently optimizes at bundle A. When the price of marshmallows decreases to $5, which bundle will the optimizing consumer choose?

• A)A
• B)B
• C)C

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Definitions:

Privatization

The transfer of ownership and management of services or assets from the public sector to private individuals or organizations.

Democratic Principles

Foundational ideas that support fairness, equality, and the participation of citizens in government decisions or policies.

Citizenship Values

Ethical standards and behaviors that relate to an individual's responsibilities, contributions, and participation within a society or community.

Community

A group of people living in the same place or having a particular characteristic in common, often marked by a sense of fellowship and shared values.