Refer to the following figure. Which is the most affordable path to the highest utility?
A)Quadrant I
B)Quadrant II
C)Quadrant III
D)Quadrant IV
E)All four quadrants are equally affordable paths to the highest utility.

Question

Refer to the following figure. Which is the most affordable path to the highest utility? 
A)Quadrant I 
B)Quadrant II 
C)Quadrant III 
D)Quadrant IV 
E)All four quadrants are equally affordable paths to the highest utility.

Quizplus · Accepted Answer

Quadrant I represents the combination of higher income and lower price, which results in the highest utility. However, the other three quadrants either have higher prices or lower income, leading to lower utility levels.

Refer to the Following Figure