JAMB Economics 2012 Objective — Question 13

Question 13 of 50 from the Joint Admissions and Matriculation Board (JAMB) Economics 2012 Objective paper, with the correct answer and a full explanation.

Use the diagram below to answer questions 13 and 14. [Indifference curve diagram: points N, K, P, M on curves with budget line] The consumer is at equilibrium at point

• A. N
• B. P
• C. M
• D. KCorrect

Explanation

At point K, the indifference curve is tangential to the budget line which satisfies the condition for equilibrium.

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