Figure 21-9

-Refer to Figure 21-9.Assume that the consumer depicted in the figure has an income of $40.Which of the following price-quantity combinations would be on her demand curve for marshmallows if the price of chocolate chips is $4?
A)$2.00, 3
B)$2.00, 9
C)$4.00, 3
D)$4.00, 9

Question

Figure 21-9
 
-Refer to Figure 21-9.Assume that the consumer depicted in the figure has an income of $40.Which of the following price-quantity combinations would be on her demand curve for marshmallows if the price of chocolate chips is $4?
A)$2.00, 3 
B)$2.00, 9 
C)$4.00, 3 
D)$4.00, 9

Quizplus · Accepted Answer

According to the diagram, at a chocolate chips price of $4, the consumer's marginal utility of marshmallows is equal to the price of $2, and she demands 9 marshmallows. This combination of price and quantity is on her demand curve for marshmallows. Therefore, the correct choice is B.

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