A Graph That Shows the Maximum Combinations of Two Goods

question 142

Multiple Choice

A graph that shows the maximum combinations of two goods which a consumer can purchase with a given money income is

• A)the production possibilities curve.
• B)an indifference curve.
• C)a demand curve.
• D)a budget line.

Understand the principle of utility maximization for consumers.

Analyze the implications of marginal utility and pricing in consumer choice.

Apply the concept of the marginal utility-to-price ratio in maximizing utility.

Understand how budget constraints affect consumer choices.