Figure 21-25 The figure pertains to a particular consumer. On the axes, X represents the quantity of good X and Y represents the quantity of good Y.
-Refer to Figure 21-25. Suppose the price of good X is $15, the price of good Y is $10, and the consumer's income is $450. Then the consumer's optimal choice is represented by a point on which curve?

Question

Figure 21-25 The figure pertains to a particular consumer. On the axes, X represents the quantity of good X and Y represents the quantity of good Y.

-Refer to Figure 21-25. Suppose the price of good X is $15, the price of good Y is $10, and the consumer's income is $450. Then the consumer's optimal choice is represented by a point on which curve?

Quizplus · Accepted Answer

The optimal choice for the consumer is represented by the point where the budget constraint (the line connecting the points (30,0) and (0,45)) is tangent to the indifference curve. Based on the given prices and income, this occurs on indifference curve I₃.

Figure 21-25 the Figure Pertains to a Particular Consumer