-Max has allocated $100 toward meats for his barbecue.His budget line and indifference map are shown in the above figure.If Max's current MRS = -1,then Max
A)is at point e.
B)is maximizing his utility.
C)will be better off by purchasing more burgers.
D)None of above.

Question

-Max has allocated $100 toward meats for his barbecue.His budget line and indifference map are shown in the above figure.If Max's current MRS = -1,then Max
A)is at point e. 
B)is maximizing his utility. 
C)will be better off by purchasing more burgers. 
D)None of above.

Quizplus · Accepted Answer

Max is at point e because his MRS = -1, which is the slope of the budget line at that point.

-Max Has Allocated $100 Toward Meats for His Barbecue