Multiple Choice
Suppose a consumer has an income equal to I which he/she spends on either food or clothing. The price of food is given by and the price of clothing is given by . Assume the consumer spends all of their income on clothing. If food is on the -axis and clothing is on the -axis, the consumer is at the:
A) point of maximum indifference.
B) -intercept.
C) interior of the budget constraint.
D) origin.
Correct Answer:

Verified
Correct Answer:
Verified
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