Graph 22-9
-Refer to Graph 22-9.Assume that the consumer depicted in the graph has an income of $50, and the price of marshmallows is $2.50, and the price of chocolate chips is $5.The optimising consumer will choose to purchase which bundle of marshmallows and chocolate chips?

Question

Graph 22-9 
-Refer to Graph 22-9.Assume that the consumer depicted in the graph has an income of $50, and the price of marshmallows is $2.50, and the price of chocolate chips is $5.The optimising consumer will choose to purchase which bundle of marshmallows and chocolate chips?

Quizplus · Accepted Answer

The optimizing consumer will choose the bundle that allows them to reach the highest possible indifference curve given their budget constraint. Bundle B is on the highest indifference curve that the consumer can reach given their income and the prices of marshmallows and chocolate chips, indicating it provides the highest level of satisfaction or utility that is attainable within their budget.

Graph 22-9 -Refer to Graph 22-9.Assume That the Consumer Depicted in the Depicted