Use the following figure to answer the question : Figure 12-3 : shows the indifference curves U 1 and U 2 of a consumer choosing between hours devoted at a tennis club and other goods.All consumers in this market have identical demand curves.IZ is the original budget line of a representative consumer,which shifts to AB when the club begins to charge an entry fee.

-Refer to Figure 12-3.What is the amount of entry fee the club is charging the consumer?
A)OZ
B)IA
C)OI
D)OA

Question

Use the following figure to answer the question : Figure 12-3 : shows the indifference curves U₁ and U₂ of a consumer choosing between hours devoted at a tennis club and other goods.All consumers in this market have identical demand curves.IZ is the original budget line of a representative consumer,which shifts to AB when the club begins to charge an entry fee.

Use the following figure to answer the question : Figure 12-3 : shows the indifference curves U<sub>1</sub> and U<sub>2</sub> of a consumer choosing between hours devoted at a tennis club and other goods.All consumers in this market have identical demand curves.IZ is the original budget line of a representative consumer,which shifts to AB when the club begins to charge an entry fee. -Refer to Figure 12-3.What is the amount of entry fee the club is charging the consumer? A) OZ B) IA C) OI D) OA

-Refer to Figure 12-3.What is the amount of entry fee the club is charging the consumer?

-Refer to Figure 12-3.What is the amount of entry fee the club is charging the consumer?
A)OZ 
B)IA 
C)OI 
D)OA

Quizplus · Accepted Answer

The entry fee is represented by the vertical distance from the origin to point A, which is IA.

Use the Following Figure to Answer the Question : Figure