The following figure shows the indifference curves U 1 and U 2 of a consumer choosing between hours devoted at a tennis club and other goods.All consumers in this market have identical demand curves.IZ is the original budget line of a representative consumer,which shifts to AB when the club begins to charge an entry fee.
Figure 12-3
-Refer to Figure 12-3.What is the amount of entry fee the club is charging the consumer?
A)OZ
B)IA
C)OI
D)OA

Question

The following figure shows the indifference curves U 1 and U 2 of a consumer choosing between hours devoted at a tennis club and other goods.All consumers in this market have identical demand curves.IZ is the original budget line of a representative consumer,which shifts to AB when the club begins to charge an entry fee.
Figure 12-3 
-Refer to Figure 12-3.What is the amount of entry fee the club is charging the consumer?
A)OZ 
B)IA 
C)OI 
D)OA

Quizplus · Accepted Answer

The Answer of The following figure shows the indifference curves U 1 and U 2 of a consumer choosing between hours devoted at a tennis club and other goods.All consumers in this market have identical demand curves.IZ is the original budget line of a representative consumer,which shifts to AB when the club begins to charge an entry fee.
Figure 12-3 
-Refer to Figure 12-3.What is the amount of entry fee the club is charging the consumer?
A)OZ 
B)IA 
C)OI 
D)OA

The Following Figure Shows the Indifference Curves U1 and U2

The Following Figure Shows the Indifference Curves U₁ and U₂