The figure below shows a consumer maximizing utility at two different prices (the left panel)and the consumer's demand for good X at the same two prices of good X (the right panel).The price of good Y is $14.At point r on indifference curve I,the MRS is _____ and _____ units of good X are purchased.
A)2; 40
B)2; 45
C)4; 40
D)4; 45
E)5; 45

Question

The figure below shows a consumer maximizing utility at two different prices (the left panel)and the consumer's demand for good X at the same two prices of good X (the right panel).The price of good Y is $14.At point r on indifference curve I,the MRS is _____ and _____ units of good X are purchased. 
A)2; 40 
B)2; 45 
C)4; 40 
D)4; 45 
E)5; 45

Quizplus · Accepted Answer

At point r, the slope of the indifference curve (MRS) is 4, and the consumer purchases 45 units of good X at a price of $12. Therefore, the answer is D which has MRS of 4 and 45 units of good X.

The Figure Below Shows a Consumer Maximizing Utility at Two