Figure 21-19
The following graph illustrates a representative consumer's preferences for marshmallows and chocolate chip cookies:

-Refer to Figure 21-19.Assume that the consumer has an income of $40.Based on the information available in the graph,which of the following price-quantity combinations would be on her demand curve for marshmallows if the price of chocolate chips were $4?
A) P=$2, Q=3
B) P=$2, Q=9
C) P=$4, Q=3
D) P=$4, Q=9

Question

Figure 21-19
The following graph illustrates a representative consumer's preferences for marshmallows and chocolate chip cookies:
 
-Refer to Figure 21-19.Assume that the consumer has an income of $40.Based on the information available in the graph,which of the following price-quantity combinations would be on her demand curve for marshmallows if the price of chocolate chips were $4?
A) P=$2, Q=3 
B) P=$2, Q=9 
C) P=$4, Q=3 
D) P=$4, Q=9

Quizplus · Accepted Answer

If the price of chocolate chips is $4, the consumer spends $36 on chocolate chips (9 units) and $4 on marshmallows (2 units at $2 each), totaling $40.

Figure 21-19 The Following Graph Illustrates a Representative Consumer's Preferences for Marshmallows