Which of the following statements is true about a consumer's optimal decision when indifference curves are concave?
A) Both goods are consumed.
B) No goods are consumed.
C) Only one of the goods is consumed.
D) It occurs at the point of tangency with the budget line.
Question 2
Refer to Figure 9.1. If the government establishes a price ceiling of 20, the resulting deadweight loss will be
A) 0.
B) 20.
C) 30.
D) 300.
E) 600.
