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If the Combination of Two Goods Is a Point of Tangency

Question 166

Multiple Choice

If the combination of two goods is a point of tangency between the budget line and an indifference curve, then:


A) consumer equilibrium has not been achieved.
B) all available income has been spent.
C) utility can be increased by consuming less of both goods.
D) utility can be decreased by consuming more of both goods.

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