Final answer:
Lisa is likely to use a pie chart or a bar graph to illustrate the university's budget allocation. A budget constraint line, similar to what is shown with indifference curves and budget lines in economics, could also effectively demonstrate the optimal allocation of university funds.
Step-by-step explanation:
If Lisa needs a visual aid to illustrate how her university allocates its budget, the most likely choice would be a pie chart or a bar graph. These types of visuals can clearly show the different segments of the budget and how much is allocated to each. For example, portions of the chart could be dedicated to academics, facilities, student services, and research, with the size of each segment corresponding to the amount of funding allocated.
Similarly, a budget constraint line on a graph, as shown in Figure B2 with indifference curves, could also help visualize how resources might be optimally allocated given the constraints of the university's budget. Optimal allocation is where the budget line is tangent to the highest possible indifference curve, demonstrating the most efficient use of funds for the desired outcome. This is analogous to Lilly's choice at point B, where her utility is maximized given her budget constraint. The same principle could be applied to help Lisa show her university's optimal budget allocation.