I got all the other questions on the assignment but for some reason I couldn't get this one.
The graph is here: http://i27.tinypic.com/2q0rfvd.jpg
And the questions are:
1. Refer to the figure above. The consumer prefers which of the following?
[A] A to B
A to C
[C] I1 to I2
[D] D to E
[E] B to A
2. In the figure above,
[A] at combination E, the marginal utility of Good X > the marginal utility of Good Y.
the price of Good X has increased causing the budget constraint to rotate out.
[C] if the price of X is $3 and with an income level of $60, combination E is consumer equilibrium.
[D] we can construct a demand curve for Good Y
[E] none of the above answers are correct.
All answers are appreciated... and if you could explain how you figured it out, that would be even better!
THANK YOU!!
The graph is here: http://i27.tinypic.com/2q0rfvd.jpg
And the questions are:
1. Refer to the figure above. The consumer prefers which of the following?
[A] A to B
A to C
[C] I1 to I2
[D] D to E
[E] B to A
2. In the figure above,
[A] at combination E, the marginal utility of Good X > the marginal utility of Good Y.
the price of Good X has increased causing the budget constraint to rotate out.
[C] if the price of X is $3 and with an income level of $60, combination E is consumer equilibrium.
[D] we can construct a demand curve for Good Y
[E] none of the above answers are correct.
All answers are appreciated... and if you could explain how you figured it out, that would be even better!
THANK YOU!!