The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3 -Refer to Figure 7.3. 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 attainable combinations of goods for a consumer are those that lie on or below the budget line. This is because the budget line represents all combinations of goods that a consumer can afford given their budget and the prices of the goods. Anything above the budget line is unaffordable and therefore not attainable.

The Below Figure Shows the Various Combinations of the Goods