-Using the above figure, we can conclude that
A) the consumer will purchase goods at combination M.
B) the consumer is indifferent between J and M.
C) K is the optimal combination of goods.
D) L is preferred to K.

Question

-Using the above figure, we can conclude that
A) the consumer will purchase goods at combination M. 
B) the consumer is indifferent between J and M. 
C) K is the optimal combination of goods. 
D) L is preferred to K.

Quizplus · Accepted Answer

K is the optimal combination of goods because it is the point where the budget line is tangent to the highest indifference curve, indicating the highest level of satisfaction the consumer can achieve given their budget.

-Using the Above Figure, We Can Conclude That