Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

In the graph above, is it possible for bundle A to be the optimal choice for a c

ID: 1135450 • Letter: I

Question

In the graph above, is it possible for bundle A to be the optimal choice for a consumer with the pictured budget line and indifference curve? O Yes, because the bundle A is preferred to all of the bundles that are in the consumer's budget set. Yes, because the indifference curve that runs through bundle A is tangent to the budget line. No, because bundle A is not affordable for the consumer. No, because there are bundles in the budget set which the consumer prefers over bundle A There is not enough information to say

Explanation / Answer

Bundle A cannot be preferred by the consumer as it lies above the consumer's budget line.

the correct option is c

Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Drop an Email at
drjack9650@gmail.com
Chat Now And Get Quote