Exhibit 20-6 ​

Multiple Choice

Exhibit 20-6
​

-Refer to Exhibit 20-6. I₁, I₂ and I₃ are indifference curves and line ab is the relevant budget constraint. The equilibrium position for the consumer is at

A) any point on the budget constraint.
B) point M.
C) point J.
D) point T.
E) point R.