What point on the graph is where the consumer has optimized her choice of provider services...

Question

Question

Ex1 QS3 Q1.png

What point on the graph is where the consumer has optimized her choice of provider services given her budget?

a. Point A b. Point B c. Point C. d. Point D. e. Points B or C.

business economics

Answer 1

Answer #1

The consumer would optimize where budget constraint is tangent to the indifference curve.

Option c is correct - point C

Answer 2

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