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. If the consumer is initially at point R, he should

A) strive for point N by obtaining a larger money income.
B) purchase more of X and less of Y.
C) remain at that point in order to maximize utility.
D) purchase more of Y and less of X.
E) none of the above