(Figure: Coffee and Comic Books) Refer to the figure. Aconsumer has $5 to spend on comic books (priced at $1 percomic book) and coffee (priced at $1 per cup). Using the figure,how many comic books and cups of coffee will this consumerpurchase?
A)three comic books and two cups of coffee
B)two comic books and three cups of coffee (True Answer )Correct
C)2.5 comic books and 2.5 cups of coffee
D)one comic book and four cups of coffee

Question

(Figure: Coffee and Comic Books) Refer to the figure. Aconsumer has $5 to spend on comic books (priced at $1 percomic book) and coffee (priced at $1 per cup). Using the figure,how many comic books and cups of coffee will this consumerpurchase?
A)three comic books and two cups of coffee 
B)two comic books and three cups of coffee (True Answer )Correct 
C)2.5 comic books and 2.5 cups of coffee 
D)one comic book and four cups of coffee

Quizplus · Accepted Answer

Based on the budget constraint line, the consumer has a maximum budget of $5 to spend on comic books and coffee. Each comic book and cup of coffee costs $1. The highest utility for the consumer is achieved where the budget constraint line is tangent to the indifference curve. In this case, it is at point B, where the consumer purchases two comic books and three cups of coffee. This combination uses the total budget of $5 and is the best choice for the consumer. Therefore, the correct answer is B.

(Figure: Coffee and Comic Books) Refer to the Figure