Graph 22-9
-Refer to Graph 22-9.Assume that the consumer depicted in the graph has an income of $20.Using the information above, which of the following price-quantity combinations would be on her demand curve for marshmallows if the price of chocolate chips is $2?

Question

Graph 22-9 
-Refer to Graph 22-9.Assume that the consumer depicted in the graph has an income of $20.Using the information above, which of the following price-quantity combinations would be on her demand curve for marshmallows if the price of chocolate chips is $2?

Quizplus · Accepted Answer

If the consumer's income is $20 and the price of chocolate chips is $2, the consumer can spend the remaining income on marshmallows. At a price of $1 per marshmallow, the consumer can buy 8 marshmallows, which fits the budget constraint.

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