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The Income-Consumption Curve for Dana Between Qa and Qb Is

Question 4

Multiple Choice

The income-consumption curve for Dana between Qa and Qb is given as: Qa = Qb. His budget constraint is given as:
120 = Qa + 4Qb
How much Qa will Dana consume to maximize utility?


A) 0
B) 24
C) 30
D) 60
E) More information is needed to answer this question.

Correct Answer:

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