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Cindy is determining how best to balance her work and leisure according to her utility preferences. She earns $45 an hour at work and spends
Cindy is determining how best to balance her work and leisure according to her utility preferences. She earns $45 an hour at work and spends all her money on sweaters, which cost $15 each. The figure illustrates her indifference curve and her budget set. At which point does Cindy choose to maximize her utility given her budget constraint?
Which answer is correct based on the graph?
(10, 42)
(27, 15)
(6, 54)
(15, 27)
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