Graph 22-5

-Refer to Graph 22-5. If a consumer is at point D they could:

Question

Graph 22-5
 
-Refer to Graph 22-5. If a consumer is at point D they could:

Quizplus · Accepted Answer

At point D, the consumer is not at the highest possible indifference curve (IC3), meaning they could increase their utility by moving up to IC3. Moving up to IC3 would require a reduction in consumption of good X and an increase in consumption of good Y. Thus, reducing their consumption of X and increasing their consumption of Y would make them better off.

Graph 22-5 -Refer to Graph 22-5. If a Consumer Is at Point