Refer to the Following Indifference Map for a Consumer Who

Multiple Choice

Refer to the following indifference map for a consumer who has an income of $48 to spend on goods X and Y and the market prices of X and Y are both equal to $4:

-Now suppose the price of good X increases to $12 while the price of good Y remains $4. Utility will be maximized on which indifference curve?

A) I
B) II
C) III
D) On an indifference curve below I