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. In Figure 19.3, point E

A. Is a high level of utility but not affordable.
B. Is optimal and affordable.
C. Gives the consumer a very high level of utility and is affordable.
D. Represents a very low level of utility and is not desirable.


Answer: A

Economics

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