Exhibit 20-6 -Refer to Exhibit 20-6. I₁, I₂ and I₃ are indifference curves and line ab is the relevant budget constraint. Point N is A)the consumer's equilibrium position. B)unattainable. C)inferior to every other labeled point on the diagram. D)attainable, but does not exhaust the consumer's income.

Question

Quizplus · Accepted Answer

Point N is on the budget line ab, indicating it is attainable, but it does not necessarily represent the point where the consumer's income is fully exhausted, as it may not be on the highest possible indifference curve.

Exhibit 20-6 ​

Exhibit 20-6