In the following budget constraint- indifference curve graph, Nikki has $170 to spend on tops and pants. a. What is the price of a top? $☐ What is the price of a pair of pants? $[ b. Is Nikki making the optimum choice if she buys 4 tops and 2 pants? OA. Yes, this point is on the budget constraint. OB. No, the indifference curve going through this point is not tangent to Nikki's budget constraint. OC. No, the other point of intersection of the indifference curve and the budget constraint is the optimal choice. OD. Yes, the indifference curve going through this point is tangent to Nikki's budget constraint. 10- 9- 8- 7- 4- 3- 2- 1- Pants

In the following budget constraint- indifference curve graph, Nikki has $170 to spend on tops and pants. a. What is the price of a top? $☐ What is the price of a pair of pants? $[ b. Is Nikki making the optimum choice if she buys 4 tops and 2 pants? OA. Yes, this point is on the budget constraint. OB. No, the indifference curve going through this point is not tangent to Nikki's budget constraint. OC. No, the other point of intersection of the indifference curve and the budget constraint is the optimal choice. OD. Yes, the indifference curve going through this point is tangent to Nikki's budget constraint. 10- 9- 8- 7- 4- 3- 2- 1- Pants

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Theory Of Consumer Choice

Section21.1: The Budget Constraint: What The Consumer Can Afford

Problem 1QQ

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