Multiple Choice
If the combination of two goods occurs at a point of tangency between the budget line and an indifference curve:
A) consumer equilibrium has not been achieved.
B) all available income has been spent and total utility is maximized.
C) total utility can be increased by consuming less of both goods.
D) total utility can be decreased by consuming more of both goods.
Correct Answer:

Verified
Correct Answer:
Verified
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