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Show how the consumer maximizes her utility

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Reference no: EM13894304

a) Suppose a consumer has two goods from which to choose. Draw a graph, with quantities on the X- and Y-axes, that illustrates how she can choose, given prices and income.

b) Also, illustrate a few indifference curves in the graph.

c) Show how the consumer maximizes her utility and where in the graph this occurs.

d) Can you give an example of a situation in which the consumer will find more than one point where she maximizes her utility? Think about what the indifference curves must look like to make this possible.

Reference no: EM13894304

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