Use the accompanying graph to answer the questions. Ziva is deciding how many fireworks and toy rockets to buy with her $120. The price of fireworks is $12, and the price of rocket U4 U5 10 U3 ships is $15. The graph shows her indifference curves for these two goods. Place the budget constraint, BC, to show U2 8 Ziva's consumption possibilities, and place point A at Ziva's consumption point if she maximizes her utility. Curves U1 through U5 represent five of Ziva's indifference curves. Then, UI answer the three questions. 4. 3 Which is the highest level of utility that Ziva can achieve 2 with her budget? 1 U3 6. 7. 10 1 2 3. 4 U4 Quantity fireworks U1 Incorrect U2 U5 Quantity rockets

Use the accompanying graph to answer the questions. Ziva is deciding how many fireworks and toy rockets to buy with her $120. The price of fireworks is $12, and the price of rocket U4 U5 10 U3 ships is $15. The graph shows her indifference curves for these two goods. Place the budget constraint, BC, to show U2 8 Ziva's consumption possibilities, and place point A at Ziva's consumption point if she maximizes her utility. Curves U1 through U5 represent five of Ziva's indifference curves. Then, UI answer the three questions. 4. 3 Which is the highest level of utility that Ziva can achieve 2 with her budget? 1 U3 6. 7. 10 1 2 3. 4 U4 Quantity fireworks U1 Incorrect U2 U5 Quantity rockets

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter4: Utility Maximization And Choice

Section: Chapter Questions

Problem 4.5P

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