-Use the above figure. What does point N represent?
A) a consumer maximizing her satisfaction
B) a consumer not maximizing her satisfaction
C) a consumer is spending more than her current income
D) a less satisfying point than compared to point J

Question

-Use the above figure. What does point N represent?
A) a consumer maximizing her satisfaction 
B) a consumer not maximizing her satisfaction 
C) a consumer is spending more than her current income 
D) a less satisfying point than compared to point J

Quizplus · Accepted Answer

Point N represents a consumer not maximizing her satisfaction because it is not on the highest possible indifference curve given the budget constraint.

-Use the Above Figure