stion 27.

In the figure above, a consumer is at BL1 and maximizes utility at point A. Suppose the consumer's budget increases to BL2. Which of the following could be the new optimal consumption bundle?

Question 27 options:

a)

Point B

b)

Point C

c)

Point D

d)	B, C, or D

Question 28(1.25 points)

Given the consumption bundle x = 10 and y = 10, a consumer's marginal rate of substitution (MRS) is equal (in absolute value) to 4. The price of x is $1 and the price of y is $0.25. The bundle x = 10 and y = 10 uses up the entirety of the consumer's income. The consumer's preferences are strictly convex. Which of the following is TRUE?

Question 28 options:

a)	To maximize utility, the consumer should buy more x and less y.

b)	To maximize utility, the consumer should buy less x and more y.

c)	The bundle x = 10 and y = 10 maximizes the consumers utility.

d)	To maximize utility, the consumer should buy more of both x and y.

Question 29(1.25 points)

Suppose that, given the consumption bundle x = 10 and y = 10, a consumer's MRS is equal (in absolute value) to 0.4. The price of x is $0.50 and the price of good y is $0.75, and the bundle x = 10 and y = 10 uses up all the consumer's income. The consumer's preferences are strictly convex. Which of the following is TRUE?

Question 29 options:

a)	To maximize utility, the consumer should buy more x and less y.

b)	To maximize utility, the consumer should buy less x and more y.

c)	The bundle x = 10 and y = 10 maximizes the consumer's utility.

d)	There is insufficient information to determine what the consumer should do to maximize utility.

Question 30(1.25 points)

All points on or below a budget constraint _________.

Question 30 options:

a)	are equally desirable

b)	represent market basket combinations that exhaust the income available

c)	are attainable with the given income

d)	are described, in part, by a, b, and c above