Figure 21-24 The figure shows three indifference curves and a budget constraint for a certain consumer named Steve.
-Refer to Figure 21-24. At his optimum, Steve is buying
A)0.6 pounds of apples.
B)2.0 pounds of apples.
C)4.5 pounds of apples.
D)5.5 pounds of apples.

Question

Figure 21-24 The figure shows three indifference curves and a budget constraint for a certain consumer named Steve. 
-Refer to Figure 21-24. At his optimum, Steve is buying
A)0.6 pounds of apples. 
B)2.0 pounds of apples. 
C)4.5 pounds of apples. 
D)5.5 pounds of apples.

Quizplus · Accepted Answer

The optimum point for Steve is determined by the point where his budget constraint is tangent to the highest possible indifference curve. This typically involves analyzing the given figure to identify the quantity of apples that corresponds to this tangency point.

Figure 21-24 the Figure Shows Three Indifference Curves and a Budget