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If the Combination of Two Goods Is a Point of Tangency

Question 189

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 been achieved.
B) some available income has not been spent.
C) utility can be decreased by consuming more of both goods.
D) utility can be increased by consuming more of one good and less of the other.

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