Refer to the Diagram, Where Xy Is the Relevant Budget

question 66

Multiple Choice

Refer to the diagram, where xy is the relevant budget line and I₁, I₂, and I₃ are indifference curves. If the consumer is initially at point L, he or she should

• A)strive for point N by obtaining a larger money income.
• B)purchase more of X and less of Y.
• C)remain at that point to maximize utility.
• D)purchase more of Y and less of X.

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Definitions:

Sella Turcica

A saddle-shaped depression in the sphenoid bone at the base of the human skull, housing the pituitary gland.

Sphenoid

A butterfly-shaped bone at the base of the skull that forms part of the floor and sides of the skull as well as the orbits around the eyes.

Occipital

Relating to the occiput, the back part of the skull or head.