- Use the indifference curves and the budget lines in Figure 19.3 to answer the indicated question.Assume the price of Y is $1 per unit.In Figure 19.3,point E
A)Is optimal and affordable.
B)Gives the consumer a very high level of utility and is affordable.
C)Is a very high level of utility but not affordable.

Question

- Use the indifference curves and the budget lines in Figure 19.3 to answer the indicated question.Assume the price of Y is $1 per unit.In Figure 19.3,point E
A)Is optimal and affordable. 
B)Gives the consumer a very high level of utility and is affordable. 
C)Is a very high level of utility but not affordable.

Quizplus · Accepted Answer

Point E represents a very high level of utility that lies beyond the consumer's budget line, indicating it is not affordable.

- Use the Indifference Curves and the Budget Lines in Figure