The below figure shows the various combinations of the goods X and Y that yield different levels of utility. Figure 6.3 - Refer to Figure 6.3.What combinations of X and Y are attainable by the consumer? A)All combinations that lie on or above I₂ B)All combinations that lie above I₁ C)All combinations that lie below I₃ D)All combinations that lie on or below the budget line. E)Only the combination of 10 units of good X and 15 units of good Y

Question

Quizplus · Accepted Answer

The consumer can only afford combinations of X and Y that lie on or below the budget line, as these represent the maximum spending capacity given their budget constraints.

The Below Figure Shows the Various Combinations of the Goods