Figure 21-15

-Refer to Figure 21-15.The price of X is $5,the price of Y is $20,and the consumer's income is $40.Which point represents the consumer's optimal choice?
A) A
B) B
C) C
D) D

Question

Figure 21-15
 
-Refer to Figure 21-15.The price of X is $5,the price of Y is $20,and the consumer's income is $40.Which point represents the consumer's optimal choice?
A) A 
B) B 
C) C 
D) D

Quizplus · Accepted Answer

The consumer's optimal choice is where the budget line is tangent to the highest possible indifference curve. Given the prices and income, point C is likely where this condition is met.

Figure 21-15 -Refer to Figure 21-15.The Price of X Is $5,the Price