Figure 21-5

-Refer to Figure 21-5.The consumer is likely to select the consumption bundle associated with which point
A)point B
B)point C
C)point D
D)point E

Question

Figure 21-5
 
-Refer to Figure 21-5.The consumer is likely to select the consumption bundle associated with which point
A)point B 
B)point C 
C)point D 
D)point E

Quizplus · Accepted Answer

Point B represents the highest level of utility the consumer can attain given their budget constraint. It is also on the budget constraint, which means that the entire budget is spent. Points C, D, and E are all below the budget constraint, meaning the consumer could afford to purchase more goods and achieve a higher level of utility.

Figure 21-5 -Refer to Figure 21-5.The Consumer Is Likely to Select the Likely