Solved

Assume a Diagram in Which a Budget Line Is Imposed

Question 355

Multiple Choice

Assume a diagram in which a budget line is imposed on an indifference map. A consumer will maximize her utility


A) at any point where the budget line and an indifference curve intersect.
B) at either point where the budget line intersects the horizontal and vertical axes.
C) where the budget line is tangent to an indifference curve.
D) where the ratio of the two product prices equals the reciprocal of the consumer's income.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions