Graph 22-9

-Refer to Graph 22-9. Assume that the consumer depicted in the graph has an income of $50. Using the information above, which of the following price-quantity combinations would be on her demand curve for marshmallows if the price of chocolate chips is $5?
A) $5, 8
B) $5, 4
C) $2.50, 8
D) $2.50, 4

Question

Graph 22-9
 
-Refer to Graph 22-9. Assume that the consumer depicted in the graph has an income of $50. Using the information above, which of the following price-quantity combinations would be on her demand curve for marshmallows if the price of chocolate chips is $5?
A) $5, 8 
B) $5, 4 
C) $2.50, 8 
D) $2.50, 4

Quizplus · Accepted Answer

If the price of chocolate chips is $5 and the consumer's income is $50, the consumer can afford more marshmallows when the price is lower. At a price of $2.50, the consumer can buy 8 marshmallows, which fits within the budget constraint.

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