Figure 7-2
Figure 7-2 represents the demand for ice cream cones.
-Refer to Figure 7-2.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.

Question

Figure 7-2
  Figure 7-2 represents the demand for ice cream cones.
-Refer to Figure 7-2.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.

Quizplus · Accepted Answer

The Answer of Figure 7-2
  Figure 7-2 represents the demand for ice cream cones.
-Refer to Figure 7-2.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.

Figure 7-2 Figure 7-2 Represents the Demand for Ice Cream