Figure 21-17

-Refer to Figure 21-17.Given the budget constraint depicted in the graph,the consumer's optimal choice will be point
A) B.
B) C.
C) D.
D) E.

Question

Figure 21-17
 
-Refer to Figure 21-17.Given the budget constraint depicted in the graph,the consumer's optimal choice will be point
A) B. 
B) C. 
C) D. 
D) E.

Quizplus · Accepted Answer

The optimal choice for a consumer is where the budget constraint is tangent to the highest indifference curve feasible. In this case, it occurs at point B, where the budget constraint intersects the indifference curve labeled U3. This point represents the consumer's highest level of satisfaction given their budget constraint.

Figure 21-17 -Refer to Figure 21-17.Given the Budget Constraint Depicted in the Constraint