Use the following to answer question:
-(Figure: Consumer Equilibrium IV)Use Figure Consumer Equilibrium IV.The lowest level of utility shown in the figure is associated with indifference curve:
A)X.
B)Y.
C)Z.
D)X or Y.

Question

Use the following to answer question: 
-(Figure: Consumer Equilibrium IV)Use Figure Consumer Equilibrium IV.The lowest level of utility shown in the figure is associated with indifference curve:
A)X. 
B)Y. 
C)Z. 
D)X or Y.

Quizplus · Accepted Answer

Point P, where the indifference curve is tangent to the budget constraint, represents the consumer's optimal choice. Therefore, the best choice(s) is the combination of goods represented by point P on indifference curve Z.

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