At what point is the consumer not maximizing her utility? a. Point A b. Point B...
At what point is the consumer not maximizing her utility?
| a. Point A |
| b. Point B |
| c. Point C. |
| d. Point D. |
| e. Points B or C. |
Homework Answers
Answer: Point D
The line that is present with a slope is called the budget lines and these curves are utility curves.
At Point A and C the utility is equal to budget line where as at point B the consumer is obtaining more utility satisfaction as the the point is above budget line.
At point D the consumer utility is not maximized as the utility point D is below budget line.
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