In the graph, which indifference curve is unattainable with the given income? A budget line from 10 units of good 2 to 20 units of good 1, and three indifference curves IC₁, IC₂, IC₃, each convex to the origin and higher than the last. IC₂ just touches the budget line at E (10 units of good 1, 5 of good 2). IC₁ cuts the budget line twice; IC₃ lies entirely beyond it.

Budget Line & Optimal Choice · Question 60 of 67

In the graph, which indifference curve is unattainable with the given income?

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In the graph, which indifference curve is unattainable with the given income?

IC₃Correct answerYour answerIC₂Correct answerYour answerIC₁Correct answerYour answerNone of themCorrect answerYour answer

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CorrectNot quiteAnswer A

Correct answer: A

Ten questions from Budget Line & Optimal Choice, at your own pace.

Ten questions from Budget Line & Optimal Choice, at your own pace.