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 $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

Question

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 $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

Quizplus · Accepted Answer

The Answer of 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 $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

Refer to the Following Indifference Map for a Consumer Who