Use the following to answer question:
-(Figure: Consumer Equilibrium III) Use Figure Consumer Equilibrium III.The highest level of total utility attainable is associated with point _____ on _____.

Question

Use the following to answer question:

-(Figure: Consumer Equilibrium III) Use Figure Consumer Equilibrium III.The highest level of total utility attainable is associated with point _____ on _____.

Quizplus · Accepted Answer

Point E represents the highest level of total utility attainable (on the highest possible indifference curve) given the budget constraint. This is because at point E, the consumer is consuming the optimal combination of X and Y, which maximizes their satisfaction given their income and the prices of the goods.

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