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When the Indifference Curve Is Tangent to the Budget Constraint

Question 158

Multiple Choice

When the indifference curve is tangent to the budget constraint,


A) a consumer cannot be made better off without an increase in her income or a price decrease in one of the goods she consumes.
B) the consumer is likely to be at a sub-optimal level of consumption.
C) income is at its optimum for a consumer.
D) indifference curves are likely to intersect.

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