Consumption bundles, economics homework help

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Description

Graph with pizza on the x-axis and apples are on the y-axis. There is a straight line budget constraint sloping down and 3 upward concave indifference curves labelled U1, U2 and U3. U1 is closest to the origin (lowest utility) and intersects the budget constraint at point W. U2 is tangent to the budget constraint at pizza = 6 and apples = 30. This is point X. U2 also has a point Y labelled which lies beyond the budget constraint. U3 is the indifference curve furthest from the origin. It does not touch the budget constraint. It has a point Z labelled at pizza = 6 and apples = 50.

FYI – All the point are supposed to lie on the indifference curves for these questions even if they appear a touch off.

Based on the budget constraint and 3 indifference curves shown here we know that:

A. Consumption bundles Y and X provide the same utility
B. Consumption bundles Y and Z provide the same utility
C. Apples cost $1 and pizzas cost $4
D. Consumption bundles X and W provide the same utility

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