Figure 5-18
In Figure 5-18, point D for the consumer
a.
will be chosen because total utility is larger there than at point C.
b.
would not be chosen because it is less desirable than point C.
c.
is unattainable, given the consumer's budget.
d.
has total utility equal to point C.
c
You might also like to view...
Other things equal, for a given tax, if the demand curve is more elastic,
a. the greater the tax revenue raised and the greater the deadweight cost of the tax. b. the greater the tax revenue raised and the smaller the deadweight cost of the tax. c. the less the tax revenue raised and the greater the deadweight cost of the tax. d. the less the tax revenue raised and the smaller the deadweight cost of the tax.
Quality information for goods that are sold online:
A. is available from ratings given by other buyers. B. is of no value because anyone can write anything on the Internet. C. is unavailable because online sellers cannot be identified with certainty. D. is ineffective at reducing asymmetric information problems.