Multiple Choice
-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 I3 line is outside the budget constraint.
C) the consumer will find the highest utility where x and y just touch the I2 line.
D) all of the above and the consumer can choose any point on or below the budget constraint line BC.
Correct Answer:

Verified
Correct Answer:
Verified
Q47: The typical pattern revealed in a budget
Q48: In the U.S., the amount in savings
Q49: Rick eats only french fries and burgers
Q50: Which of the following is most likely
Q51: Briefly describe the choices a household will
Q53: Bob budgets $12 a week for entertainment.
Q54: Larry attends college and works part-time job
Q55: Briefly explain the relevant portions shown in
Q56: Substitution and income effects of a change
Q57: Janie works for an accounting firm. Her