Figure 21-24 The figure shows three indifference curves and a budget constraint for a certain consumer named Steve.
-Refer to Figure 21-24. Suppose the price of pears, the price of apples, and Steve's income remain constant, and Steve moves from point B to point C. In doing so, Steve
A)becomes better off.
B)moves from a point that is not optimal to a point that is optimal.
C)gives up some apples to get some pears.
D)All of the above are correct.

Question

Figure 21-24 The figure shows three indifference curves and a budget constraint for a certain consumer named Steve. 
-Refer to Figure 21-24. Suppose the price of pears, the price of apples, and Steve's income remain constant, and Steve moves from point B to point C. In doing so, Steve
A)becomes better off. 
B)moves from a point that is not optimal to a point that is optimal. 
C)gives up some apples to get some pears. 
D)All of the above are correct.

Quizplus · Accepted Answer

Moving from point B to point C indicates a trade-off where Steve gives up some apples to obtain more pears, assuming the prices and income remain constant.

Figure 21-24 the Figure Shows Three Indifference Curves and a Budget