-Use the above figure. What does point N represent?
A) A consumer maximizing her satisfaction.
B) A consumer not maximizing her satisfaction.
C) A consumer is spending more than her current income.
D) A less satisfying point than compared to point J.

Question

-Use the above figure. What does point N represent?
A) A consumer maximizing her satisfaction. 
B) A consumer not maximizing her satisfaction. 
C) A consumer is spending more than her current income. 
D) A less satisfying point than compared to point J.

Quizplus · Accepted Answer

Point N represents a consumer not maximizing her satisfaction because it is not on the highest possible indifference curve given the budget constraint.

-Use the Above Figure