Exhibit 6-25 Point b in Exhibit 6-25 is better than which other point(s)?
A)Points a and c because b represents the same utility at a lower level of expenditure.
B)Points a and c because b represents higher utility at the same level of expenditure.
C)Points a and c because b represents higher utility at a lower level of expenditure.
D)Point e only because b represents a lower level of expenditure.
E)All other points on the graph.

Question

Exhibit 6-25  Point b in Exhibit 6-25 is better than which other point(s)?
A)Points a and c because b represents the same utility at a lower level of expenditure. 
B)Points a and c because b represents higher utility at the same level of expenditure. 
C)Points a and c because b represents higher utility at a lower level of expenditure. 
D)Point e only because b represents a lower level of expenditure. 
E)All other points on the graph.

Quizplus · Accepted Answer

Point b represents the same utility as points a and c but at a lower level of expenditure, which means that point b is more efficient and provides a greater level of satisfaction for the consumer. Therefore, it is better than points a and c.

Exhibit 6-25 Point B in Exhibit 6-25 Is Better