Use the following to answer question(s): Consumer Equilibrium 2

-(Exhibit: Consumer Equilibrium 2) Which of the following statements is true?
A) Point F indicates the price of good Y.
B) Point L indicates the price of good X.
C) Points G and I represent the same level of total utility.
D) None of the above statements is true.

Question

Use the following to answer question(s): Consumer Equilibrium 2
 
-(Exhibit: Consumer Equilibrium 2) Which of the following statements is true?
A) Point F indicates the price of good Y. 
B) Point L indicates the price of good X. 
C) Points G and I represent the same level of total utility. 
D) None of the above statements is true.

Quizplus · Accepted Answer

None of the statements are true. Point F is the optimal point where the budget constraint touches the highest indifference curve. Point L is irrelevant to the exhibit. Points G and I are at different levels of total utility as they are on different indifference curves.

Use the Following to Answer Question(s): Consumer Equilibrium 2