Good X Good Y Refer to the above diagram. In this instance: A. the BC line is diagonal because the amount spent on both goods is less or equal to income. B. the consumer will find that every point along the 13 line is outside the budget constraint. O C. the consumer will find the highest utility where x and y just touch the 12 line. O D. all of the above and the consumer can choose any point on or below the budget constraint line BC.
Good X Good Y Refer to the above diagram. In this instance: A. the BC line is diagonal because the amount spent on both goods is less or equal to income. B. the consumer will find that every point along the 13 line is outside the budget constraint. O C. the consumer will find the highest utility where x and y just touch the 12 line. O D. all of the above and the consumer can choose any point on or below the budget constraint line BC.
Chapter7: Consumer Choice: Maximizing Utility And Behavioral Economics
Section: Chapter Questions
Problem 6QP
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Transcribed Image Text:Good X
Refer to the above diagram. In this instance:
A. the BC line is diagonal because the amount spent on both goods is less or equal to income.
B. the consumer will find that every point along the 13 line is outside the budget constraint.
O C. the consumer will find the highest utility where x and y just touch the 12 line.
D. all of the above and the consumer can choose any point on or below the budget constraint line BC.
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