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The Following Figure Shows the Indifference Curves U1 and U2

Question 59

Multiple Choice

The following figure shows the indifference curves U1 and U2 of a consumer choosing between hours devoted at a tennis club and other goods.All consumers in this market have identical demand curves.IZ is the original budget line of a representative consumer,which shifts to AB when the club begins to charge an entry fee.
Figure 12-3 The following figure shows the indifference curves U<sub>1</sub> and U<sub>2</sub> of a consumer choosing between hours devoted at a tennis club and other goods.All consumers in this market have identical demand curves.IZ is the original budget line of a representative consumer,which shifts to AB when the club begins to charge an entry fee. Figure 12-3   -Refer to Figure 12-3.What is the amount of entry fee the club is charging the consumer? A) OZ B) IA C) OI D) OA
-Refer to Figure 12-3.What is the amount of entry fee the club is charging the consumer?


A) OZ
B) IA
C) OI
D) OA

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