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-Refer to Figure 6 -1

Question 8

Multiple Choice

  -Refer to Figure 6 -1. Which of the following statements is true? A)  Points a and b are derived independently of the utility -maximizing model. B)  Points a and b are the utility -maximizing quantities of ice cream cones at two different prices of ice cream. C)  Point a could be a utility -maximizing choice if the price is US$3 but point b may not be because we have no information on the marginal utility per dollar when price changes. D)  Points a and b may not necessarily be the utility -maximizing quantities of ice cream cones at two different prices because we have no information on the consumer's budget or the price of other goods.
-Refer to Figure 6 -1. Which of the following statements is true?


A) Points a and b are derived independently of the utility -maximizing model.
B) Points a and b are the utility -maximizing quantities of ice cream cones at two different prices of ice cream.
C) Point a could be a utility -maximizing choice if the price is US$3 but point b may not be because we have no information on the marginal utility per dollar when price changes.
D) Points a and b may not necessarily be the utility -maximizing quantities of ice cream cones at two different prices because we have no information on the consumer's budget or the price of other goods.

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