Use the following to answer question:
-(Figure: Consumer Equilibrium IV)Use Figure Consumer Equilibrium IV.Assume that you are consuming the combination of goods at point G.Given the budget constraint FL,utility:
A)can be increased by consuming more train tickets and fewer nights in a hotel room.
B)can be increased by consuming fewer train tickets and more nights in a hotel room.
C)can be increased by consuming more of both goods.
D)cannot be increased.

Question

Use the following to answer question: 
-(Figure: Consumer Equilibrium IV)Use Figure Consumer Equilibrium IV.Assume that you are consuming the combination of goods at point G.Given the budget constraint FL,utility:
A)can be increased by consuming more train tickets and fewer nights in a hotel room. 
B)can be increased by consuming fewer train tickets and more nights in a hotel room. 
C)can be increased by consuming more of both goods. 
D)cannot be increased.

Quizplus · Accepted Answer

At point G, the consumer is not on the budget line, meaning they are not utilizing their entire budget. Moving towards the budget line (e.g., by consuming more train tickets and fewer nights in a hotel room) would increase utility by reaching a higher indifference curve.

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