Figure 21-6

-Refer to Figure 21-6.The consumer is likely to select the consumption bundle at

Question

Figure 21-6
 
-Refer to Figure 21-6.The consumer is likely to select the consumption bundle at

Quizplus · Accepted Answer

At point B, the consumer is maximizing their utility (or satisfaction) given their budget constraint. This is because point B is on the highest possible indifference curve (indicating highest utility) that touches the budget constraint. Points C, D, and E are all on lower indifference curves, indicating lower levels of satisfaction.

Figure 21-6 -Refer to Figure 21-6.The Consumer Is Likely to Select the Likely