passwella.
Menu

JAMB Economics 2012 Question 13

Question 13

Theory of Consumer Behaviour

Use the diagram below to answer the question.
The consumer is at equilibrium at point

Diagram for this question
  1. A.N
  2. B.P
  3. C.M
  4. D.K
Show the answer and explanation

Answer: D (K)

Explanation

Equilibrium is where the budget line just touches the highest indifference curve the consumer can reach, which is at K.