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 sayExplanation / Answer
Bundle A cannot be preferred by the consumer as it lies above the consumer's budget line.
the correct option is c
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