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B. If good 1 is now rationed at G*, the consumer will no longer be able to attain the utility maximizing point. He/she cannot purchase
B. If good 1 is now rationed at G*, the consumer will no longer be able to attain the utility maximizing point. He/she cannot purchase amounts of good 1 exceeding Answer 1 Question 10 As a result, the consumer will have to purchase more of the other good instead. The highest utility level the consumer can achieve with rationing lies at point Answer 2 Question 10 . This is not a point of tangency, and the consumer's utility is lower than at point Answer 3 Question 10 , the utility maximizing point without rationing, so the consumer is worse off as a result of rationing
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