Figure 3-1 shows the preferences of a consumer toward reading books and watching movies.
-Refer to Figure 3-1.ref SHAPE \* MERGEFORMAT Which of the following is the point at which the consumer maximizes his utility?
A)A
B)C
C)D

Question

Figure 3-1 shows the preferences of a consumer toward reading books and watching movies. 
-Refer to Figure 3-1.ref SHAPE \* MERGEFORMAT Which of the following is the point at which the consumer maximizes his utility?
A)A 
B)C 
C)D

Quizplus · Accepted Answer

The consumer maximizes utility at the point where the budget line is tangent to the highest possible indifference curve, which is typically represented by point D in such diagrams.

Figure 3-1 Shows the Preferences of a Consumer Toward Reading