Use the Indifference Curves and the Budget Lines in Figure

question 85

Multiple Choice

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

---

Definitions:

Generates Revenues

The process by which businesses engage in activities that result in the inflow of cash or other assets from delivering goods or services.