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Suppose a Consumer Has an Income Equal to I Which PfP _ { f }

Question 29

Multiple Choice

Suppose a consumer has an income equal to I which he/she spends on either food or clothing. The price of food is given by PfP _ { f } and the price of clothing is given by PcP _ { c } . Assume the consumer spends all of their income on clothing. If food is on the xx -axis and clothing is on the yy -axis, the consumer is at the:


A) point of maximum indifference.
B) yy -intercept.
C) interior of the budget constraint.
D) origin.

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