Graph 22-6
-Refer to Graph 22-6.In the figure shown, an optimising consumer is most likely to select the consumption bundle associated with:
A)point A
B)point B
C)point C
D)point E

Question

Graph 22-6 
-Refer to Graph 22-6.In the figure shown, an optimising consumer is most likely to select the consumption bundle associated with:
A)point A 
B)point B 
C)point C 
D)point E

Quizplus · Accepted Answer

The optimising consumer will select the consumption bundle that is on the highest possible indifference curve and is still affordable. Point C is the highest possible indifference curve that intersects with the budget line, so it is the best choice. Points A, B, and E are on lower indifference curves and would not be preferred by the consumer.

Graph 22-6 -Refer to Graph 22-6.In the Figure Shown, an Optimising Consumer