Economics 9708 · AS & A Level · Indifference curves and budget lines

Indifference curves and budget lines — practice question

The diagram illustrates a household's budget line in indifference curve analysis. (Points R, S, and T are positioned on the budget line between goods X and Y) What conclusion can be drawn about the amount of income the household may spend?

  • AIt is greater at point R than point S.
  • BIt is greater at point T than point S.
  • CIt is greatest at point S.
  • DIt is the same at points R, S and T.

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