Author Question: Max has allocated 100 toward meats for his barbecue. His budget line and indifference map are shown ... (Read 111 times)

theo · **on:** Jul 1, 2018

Max has allocated 100 toward meats for his barbecue. His budget line and indifference map are shown in the above figure. If Max is currently at point d,

A) the absolute value of his MRS is larger than the trade-off offered by the market.
B) he is willing to give up more chicken than he has to, given market prices.
C) he is not maximizing his utility.
D) All of the above.

Question 2

Max has allocated 100 toward meats for his barbecue. His budget line and indifference map are shown in the above figure. If Max is currently at point e,

A) the absolute value of his MRS is less than the trade-off offered by the market.
B) he is willing to give up more burger than he has to, given market prices.
C) he is not maximizing his utility.
D) All of the above.