-In the above figure, if the budget line is the line DE, the consumer will maximize utility at point
A) A.
B) B.
C) C.
D) G.

Question

-In the above figure, if the budget line is the line DE, the consumer will maximize utility at point
A) A. 
B) B. 
C) C. 
D) G.

Quizplus · Accepted Answer

The consumer maximizes utility at the point where the budget line is tangent to the highest possible indifference curve. Point B is that point of tangency, indicating the highest level of utility the consumer can achieve given their budget constraint.

-In the Above Figure, If the Budget Line Is the Line