Graph 22-9

-Refer to Graph 22-9. Assume that the consumer depicted in the graph has an income of $50 and the price of marshmallows is $5. The optimising consumer will choose to purchase which bundle of marshmallows and chocolate chips?
A) bundle A
B) bundle B
C) bundle C
D) bundle D

Question

Graph 22-9
 
-Refer to Graph 22-9. Assume that the consumer depicted in the graph has an income of $50 and the price of marshmallows is $5. The optimising consumer will choose to purchase which bundle of marshmallows and chocolate chips?
A) bundle A 
B) bundle B 
C) bundle C 
D) bundle D

Quizplus · Accepted Answer

The consumer will choose bundle A because it is the only bundle that is on the budget line and provides the highest level of utility.

Graph 22-9 -Refer to Graph 22-9. Assume That the Consumer Depicted in the Consumer