(Solved): Refer to the following indifference map for a consumer who has an income of $48 to spend on goods&nb ...

Refer to the following indifference map for a consumer who has an income of $48 to spend on goods X and Y and the market prices of X and Y are both $4:

Now suppose the price of good X increases to $12 while the price of good Y remains $4. Utility will be maximized on which indifference curve?

A. I

B. III

C. II