Figure 62 Figure 6

Multiple Choice

Figure 6.2 Figure 6.2 represents the demand for ice cream cones.
-Refer to Figure 6.2.Which of the following statements is true?

A) Points a and b are the utility-maximising quantities of ice cream cones at two different prices of ice cream.
B) Points a and b may not necessarily be the utility-maximising quantities of ice cream cones at two different prices because we have no information on the consumer's budget or the price of other goods.
C) Point a could be a utility-maximising choice if the price is $3, but point b may not be because we have no information on the marginal utility per dollar when price changes.
D) Points a and b are derived independently of the utility-maximising model.