Figure 21-9

-Refer to Figure 21-9.Assume that the consumer depicted in the figure has an income of $40,the price of a bag of marshmallows is $2,and the price of a bag of chocolate chips is $2.The optimizing consumer will choose to purchase which bundle of marshmallows and chocolate chips?
A)bundle A
B)bundle B
C)bundle C
D)bundle D

Question

Figure 21-9
 
-Refer to Figure 21-9.Assume that the consumer depicted in the figure has an income of $40,the price of a bag of marshmallows is $2,and the price of a bag of chocolate chips is $2.The optimizing consumer will choose to purchase which bundle of marshmallows and chocolate chips?
A)bundle A 
B)bundle B 
C)bundle C 
D)bundle D

Quizplus · Accepted Answer

The consumer's budget allows for 20 units (40/2) of either good. Bundle C is on the budget line, maximizing utility within the budget constraint.

Figure 21-9 -Refer to Figure 21-9.Assume That the Consumer Depicted in the Consumer