Figure: Consumer Equilibrium IV
(Figure: Consumer Equilibrium IV) Look at the figure Consumer Equilibrium IV.The highest level of utility shown in the figure is at point:
A)G.
B)H.
C)I.
D)J.

Question

Quizplus · Accepted Answer

The highest level of utility is represented by point J, where the budget line is tangent to the highest possible indifference curve. At this point, the consumer is maximizing their utility given their budget constraint. Points G, H, and I are all on lower indifference curves and therefore represent lower levels of utility.