(Figure: Consumer Equilibrium III) Use Figure Consumer Equilibrium III.Kurt would maximize his utility at point _ with the consumption of _.

A) B;Q₆ and Q₃
B) E;Q₁ and Q₇
C) F;Q₅ and Q₄
D) E;Q₅ and Q₂

Question

(Figure: Consumer Equilibrium III) Use Figure Consumer Equilibrium III.Kurt would maximize his utility at point _____ with the consumption of _____.

A) B;Q₆ and Q₃
B) E;Q₁ and Q₇
C) F;Q₅ and Q₄
D) E;Q₅ and Q₂

Ricardo Escobedo · Accepted Answer

Final Answer : D, Explanation :  Kurt would maximize his utility at point E where the budget constraint is tangent to the highest possible indifference curve. At this point, he consumes Q 2  of good X and Q 5  of good Y, which is the combination that gives him the most satisfaction given his budget constraint. Choice A is incorrect because point B lies below the highest possible indifference curve and would not provide Kurt with the most satisfaction. Choice B is incorrect because point E is the correct point, but the consumption levels given (Q 1  and Q 7 ) do not correspond to the budget constraint at that point. Choice C is incorrect because point F is to the left of the highest possible indifference curve and would not provide Kurt with the most satisfaction.

(Figure: Consumer Equilibrium III) Use Figure Consumer Equilibrium III.Kurt would maximize his utility at point _ with the consumption of _.

A) B;Q₆ and Q₃
B) E;Q₁ and Q₇
C) F;Q₅ and Q₄
D) E;Q₅ and Q₂

Definitions

Learning Objectives

Learning Objectives

Related questions

(Figure: Consumer Equilibrium III) Use Figure Consumer Equilibrium III.Kurt would maximize his utility at point _____ with the consumption of _____.A) B;Q6 and Q3B) E;Q1 and Q7C) F;Q5 and Q4D) E;Q5 and Q2

Definitions

Learning Objectives

Learning Objectives

Related questions

(Figure: Consumer Equilibrium III) Use Figure Consumer Equilibrium III.Kurt would maximize his utility at point _ with the consumption of _.

A) B;Q₆ and Q₃
B) E;Q₁ and Q₇
C) F;Q₅ and Q₄
D) E;Q₅ and Q₂