Refer to the diagram, where xy is the relevant budget line and I₁, I₂, and I₃ are indifference curves. If the consumer is initially at point L, he or she should
A)strive for point N by obtaining a larger money income.
B)purchase more of X and less of Y.
C)remain at that point to maximize utility.
D)purchase more of Y and less of X.

Question

Refer to the diagram, where xy is the relevant budget line and I₁, I₂, and I₃ are indifference curves. If the consumer is initially at point L, he or she should
A)strive for point N by obtaining a larger money income. 
B)purchase more of X and less of Y. 
C)remain at that point to maximize utility. 
D)purchase more of Y and less of X.

Quizplus · Accepted Answer

The Answer of  Refer to the diagram, where xy is the relevant budget line and I₁, I₂, and I₃ are indifference curves. If the consumer is initially at point L, he or she should
A)strive for point N by obtaining a larger money income. 
B)purchase more of X and less of Y. 
C)remain at that point to maximize utility. 
D)purchase more of Y and less of X.

Refer to the Diagram, Where Xy Is the Relevant Budget