Figure 21-19
-Refer to Figure 21-19. Assume that the consumer depicted in the figure has an income of $20. The price of Skittles is $2 and the price of M&M's is $4. The consumer's optimal choice is point
A)A.
B)B.
C)C.
D)D.

Question

Figure 21-19 
-Refer to Figure 21-19. Assume that the consumer depicted in the figure has an income of $20. The price of Skittles is $2 and the price of M&M's is $4. The consumer's optimal choice is point
A)A. 
B)B. 
C)C. 
D)D.

Quizplus · Accepted Answer

The consumer's optimal choice is point A because it is the point on the budget line where the consumer's indifference curve is tangent to the budget line. At this point, the consumer is maximizing their utility given their budget constraint.

Figure 21-19 -Refer to Figure 21-19. Assume That the Consumer Depicted in Consumer