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Use the Indifference Curves and the Budget Lines in Figure

Question 37

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Use the indifference curves and the budget lines in Figure 19.3 to answer the indicated question.Assume the price of Y is $1 per unit.In Figure 19.3,point E Use the indifference curves and the budget lines in Figure 19.3 to answer the indicated question.Assume the price of Y is $1 per unit.In Figure 19.3,point E A) Is optimal and affordable. B) Gives the consumer a very high level of utility and is affordable. C) Is a high level of utility but not affordable. D) Represents a very low level of utility and is not desirable.


A) Is optimal and affordable.
B) Gives the consumer a very high level of utility and is affordable.
C) Is a high level of utility but not affordable.
D) Represents a very low level of utility and is not desirable.

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