Use the following to answer question(s): Consumer Equilibrium 3

-(Exhibit: Consumer Equilibrium 3) The lowest level of utility shown in the exhibit is associated with:
A) indifference curve X.
B) indifference curve Y.
C) indifference curve Z.
D) either indifference curve X or Y.

Question

Use the following to answer question(s): Consumer Equilibrium 3
 
-(Exhibit: Consumer Equilibrium 3) The lowest level of utility shown in the exhibit is associated with:
A) indifference curve X. 
B) indifference curve Y. 
C) indifference curve Z. 
D) either indifference curve X or Y.

Quizplus · Accepted Answer

The lowest level of utility is where the budget line intersects with indifference curve Z. This is because indifference curve Z is the furthest from the origin, indicating higher levels of utility, compared to indifference curve X and Y. Therefore, the answer is C- indifference curve Z.

Use the Following to Answer Question(s): Consumer Equilibrium 3