Question 4 of 6 Map sapling learning Use the graph below to answer the guestions

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Question 4 of 6 Map sapling learning Use the graph below to answer the guestions. Ziva is deciding how many fireworks and toy rockets to buy with her $120. The price of fireworks is $12, and the price of rocket ships is $15. The graph below shows her indifference curves for these two goods. Place the red budget constraint, BC, to show Ziva's consumption possibiities and the orange point, A, at Ziva's consumption point if she maximizes her utility and answer the three questions below. Which is the highest level of utility that Ziva can U5 U4. achieve with her budget? 10 U3 O U1 U2 O U2 O U3 O U4 O U5 5 How much of each good does Ziva consume at these prices? Please answer in whole numbers. 4 Number Rockets Number BC 1 2 4 5 6 7 8 9 10 Fireworks Quantity fireworks O Previous ® Give Up & View Solution Check Answer 0 Next Ext Hint

Explanation / Answer

U3 is the highest level of utility that Ziva can achieve with her budget.

Ziva consumes 5 units of fireworks and 4 units of rocket ships. 5 x 12 = $60 & 4 x 15 = $60. 60 + 60 = $120 which is the budget of Ziva.

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