1)if two bundles of goods satisfy a comsumer equally well, the consumer is neces

Question

1)if two bundles of goods satisfy a comsumer equally well, the consumer is necessarily

a. in a position of equilibrium

b. on her budget contraint

c. optiimally satisfied

d. indifferent between the bundles

2) Indifference curves provide a way to graphically represent
a. the constraints faced by individuals.
b. an individual's preferences.
c. the relative price of commodities.
d. an income level sufficient to make an individual happy.

3)

5. Using the figure in Panel A, if income is equal to $120, the price of good Y is

a. $6.
b. $4.
c. $2.
d. $1.

Explanation / Answer

1)if two bundles of goods satisfy a comsumer equally well, the consumer is necessarily

d. indifferent between the bundles

2) Indifference curves provide a way to graphically represent
b. an individual's preferences.

3) if income is equal to $120, the price of good Y is

c. $2.

I = PxX+PyY, 120 = Px*0 + Py *60

Py = 120/60 = 2

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