When the indifference curve is tangent to the budget constraint, a. indifference curves are likely to intersect.
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Question:
When the indifference curve is tangent to the budget constraint,
a. | indifference curves are likely to intersect. |
b. | a consumer cannot be made better off without an increase in her income or a price decrease in one of the goods she consumes. |
c. | the consumer is likely to be at a sub-optimal level of consumption. |
d. | income is at its optimum for a consumer. |
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
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