Figure 21-20
The following graph illustrates a representative consumer's preferences for marshmallows and chocolate chip cookies:
-Refer to Figure 21-20. Assume that the consumer depicted the figure has an income of $50. Based on the information available in the graph, which of the following price-quantity combinations would be on her demand curve for chocolate chips if the price of marshmallows is $2.50?
A)P=$2.50, Q=6
B)P=$2.50, Q=10
C)P=$5.00, Q=3
D)P=$5.00, Q=5

Question

Figure 21-20
The following graph illustrates a representative consumer's preferences for marshmallows and chocolate chip cookies: 
-Refer to Figure 21-20. Assume that the consumer depicted the figure has an income of $50. Based on the information available in the graph, which of the following price-quantity combinations would be on her demand curve for chocolate chips if the price of marshmallows is $2.50?
A)P=$2.50, Q=6 
B)P=$2.50, Q=10 
C)P=$5.00, Q=3 
D)P=$5.00, Q=5

Quizplus · Accepted Answer

According to the graph, at a price of $2.50 for marshmallows, the consumer would be willing to purchase 10 chocolate chip cookies. This combination (P=$2.50, Q=10) would be on her demand curve for chocolate chips. The other options listed either have a different price for marshmallows or a quantity of chocolate chips that is not on her demand curve at the given price for marshmallows.

Figure 21-20 The Following Graph Illustrates a Representative Consumer's Preferences for Marshmallows