Based on the following graph,one point on the consumer's demand curve for X is The consumer's income is $600.
A)60 units at a price of $10.
B)35 units at a price of $10.
C)35 units at a price of $6.
D)25 units at a price of $10.
E)25 units at a price of $7.50.

Question

Based on the following graph,one point on the consumer's demand curve for X is  The consumer's income is $600.
A)60 units at a price of $10. 
B)35 units at a price of $10. 
C)35 units at a price of $6. 
D)25 units at a price of $10. 
E)25 units at a price of $7.50.

Quizplus · Accepted Answer

At point 11eab534_69a3_7bf5_9198_e5188121e8ad_TB2562_00 on the demand curve, the price of X is $10 and the quantity demanded is 25 units. Since the consumer's income is $600, the total amount she can spend on X is $600. Therefore, she can buy a maximum of 60 units if the price is $10, or 100 units if the price is $6. However, the point on the demand curve indicates her optimal choice, which is 25 units at a price of $10. Any other combination would either result in a lower quantity of X or a higher overall expenditure.

Based on the Following Graph,one Point on the Consumer's Demand