Graph 22-9

-Refer to Graph 22-9. Assume that the consumer depicted in the graph has an income of $100. If the price of chocolate chips is $5, the optimising consumer would choose to purchase:
A) 13 marshmallows and 7 chocolate chips
B) 10 marshmallows and 10 chocolate chips
C) 8 marshmallows and 12 chocolate chips
D) 6 marshmallows and 14 chocolate chips

Question

Graph 22-9
 
-Refer to Graph 22-9. Assume that the consumer depicted in the graph has an income of $100. If the price of chocolate chips is $5, the optimising consumer would choose to purchase:
A) 13 marshmallows and 7 chocolate chips 
B) 10 marshmallows and 10 chocolate chips 
C) 8 marshmallows and 12 chocolate chips 
D) 6 marshmallows and 14 chocolate chips

Quizplus · Accepted Answer

The consumer's budget constraint is $100. If chocolate chips cost $5 each, buying 10 chocolate chips costs $50, leaving $50 for marshmallows. If the consumer can buy 10 marshmallows with the remaining $50, this option fits the budget.

Graph 22-9 -Refer to Graph 22-9. Assume That the Consumer Depicted in the Consumer