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Use the Indifference Curves and the Budget Lines in Figure

Question 87

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Use the indifference curves and the budget lines in Figure 19.3 to answer the indicated question.Assume that the price of both goods X and Y are $1 each.Point D on the graph. Use the indifference curves and the budget lines in Figure 19.3 to answer the indicated question.Assume that the price of both goods X and Y are $1 each.Point D on the graph. A) Is not affordable. B) Is affordable but does not yield the highest utility possible. C) Is affordable and is the optimal consumption bundle for this individual. D) Lies on an indifference curve that is not obtainable.


A) Is not affordable.
B) Is affordable but does not yield the highest utility possible.
C) Is affordable and is the optimal consumption bundle for this individual.
D) Lies on an indifference curve that is not obtainable.

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