The figure to the right represents the demand for ice cream cones. Which of the following statements is true? OA. Points a and b may not necessarily be the utility -maximizing 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. B. Points a and b are the utility - maximizing quantities of ice cream cones at two different prices of ice cream. OC. Points a and b are derived independently of the utility - maximizing model. OD. Point a could be a utility - maximizing 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. Price 2 1 0 3 b 4 Demand Quantit

The figure to the right represents the demand for ice cream cones. Which of the following statements is true? OA. Points a and b may not necessarily be the utility -maximizing 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. B. Points a and b are the utility - maximizing quantities of ice cream cones at two different prices of ice cream. OC. Points a and b are derived independently of the utility - maximizing model. OD. Point a could be a utility - maximizing 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. Price 2 1 0 3 b 4 Demand Quantit

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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6. Part a and Part B
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