Refer to the following graphs of a consumer's indifference map and budget lines and possible demand curves:

The price of Y is $50.
-At point A,
A) the consumer can exchange two units of X for one unit of Y and keep utility unchanged.
B) the consumer can exchange two units of X for one unit of Y and keep income unchanged.
C) the consumer receives twice as much marginal utility from X as from Y.
D) both a and b
E) all of the above

Question

Refer to the following graphs of a consumer's indifference map and budget lines and possible demand curves:

The price of Y is $50.
-At point A,
A) the consumer can exchange two units of X for one unit of Y and keep utility unchanged. 
B) the consumer can exchange two units of X for one unit of Y and keep income unchanged. 
C) the consumer receives twice as much marginal utility from X as from Y. 
D) both a and b 
E) all of the above

Quizplus · Accepted Answer

At point A, the consumer can exchange two units of X for one unit of Y and keep both utility and income unchanged.

Refer to the Following Graphs of a Consumer's Indifference Map