Refer to the following graph:

The consumer's income is $1,200.
-At point B,
A) the rate at which the consumer is willing to substitute X for Y is greater than it is at point A.
B) the consumer is willing to give up more Y in order to gain an extra unit of X than at point A.
C) the consumer will receive more Y for each unit of X exchanged in the market than at point A.
D) both a and b
E) all of the above

Question

Refer to the following graph:

The consumer's income is $1,200.
-At point B,
A) the rate at which the consumer is willing to substitute X for Y is greater than it is at point A. 
B) the consumer is willing to give up more Y in order to gain an extra unit of X than at point A. 
C) the consumer will receive more Y for each unit of X exchanged in the market than at point A. 
D) both a and b 
E) all of the above

Quizplus · Accepted Answer

At point B, the consumer is willing to give up more Y in order to gain an extra unit of X than at point A, and the rate at which the consumer is willing to substitute X for Y is greater than it is at point A. Therefore, both A and B are correct.

Refer to the Following Graph