Figure 21-9

-Refer to Figure 21-9.Assume that the consumer depicted in the figure has an income of $40.If the price of chocolate chips is $4.00 and the price of marshmallows is $4.00,the optimizing consumer would choose to purchase
A)9 marshmallows and 6 chocolate chips.
B)10 marshmallows and 10 chocolate chips.
C)5 marshmallows and 5 chocolate chips.
D)3 marshmallows and 9 chocolate chips.

Question

Figure 21-9
 
-Refer to Figure 21-9.Assume that the consumer depicted in the figure has an income of $40.If the price of chocolate chips is $4.00 and the price of marshmallows is $4.00,the optimizing consumer would choose to purchase
A)9 marshmallows and 6 chocolate chips. 
B)10 marshmallows and 10 chocolate chips. 
C)5 marshmallows and 5 chocolate chips. 
D)3 marshmallows and 9 chocolate chips.

Quizplus · Accepted Answer

The consumer's budget constraint is $40, and both goods cost $4 each. Therefore, the consumer can purchase a combination of goods that total $40. Option C, with 5 marshmallows and 5 chocolate chips, costs $20 for each, totaling $40, which fits the budget constraint.

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