-Use the indifference curves and the budget lines in Figure 19.3 to answer the indicated question.Assume the price of Y is $1 per unit.Point D on the graph
A)Is not affordable.
B)Is affordable but does not yield the highest utility possible.
C)Is affordable and is the optimal consumption bundle for this individual.

Question

-Use the indifference curves and the budget lines in Figure 19.3 to answer the indicated question.Assume the price of Y is $1 per unit.Point D on the graph
A)Is not affordable. 
B)Is affordable but does not yield the highest utility possible. 
C)Is affordable and is the optimal consumption bundle for this individual.

Quizplus · Accepted Answer

Point D is on the budget line, meaning it is affordable, but it may not be on the highest indifference curve, indicating it does not yield the highest utility possible.

-Use the Indifference Curves and the Budget Lines in Figure