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The Point Where the Indifference Curve Is Tangent to the Budget

Question 123

Multiple Choice

The point where the indifference curve is tangent to the budget line


A) is a point on a consumer's demand curve.
B) is the best affordable point.
C) is where the marginal rate of substitution exceeds the relative price by as much as possible.
D) All of the above answers are correct.

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