Exhibit 20-6 ​ Refer to Exhibit 20-6. I₁, I₂ and I₃ Are Indifference

question 157

Multiple Choice

Exhibit 20-6 ​

Refer to Exhibit 20-6. I₁, I₂ and I₃ are indifference curves and line ab is the relevant budget constraint. If the consumer is initially at point R, he 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 in order to maximize utility.
• D)purchase more of Y and less of X.

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