Multiple Choice
The below indifference map shows the various combinations of hours of music and apples that yield different levels of utility.Figure 7.1
-When the budget line for two goods is just tangent to the highest achievable indifference curve, then _____.
A) the consumer is in equilibrium
B) the consumer should purchase more of the good represented on the horizontal axis
C) the consumer should purchase more of the good represented on the vertical axis
D) the consumer cannot afford the combination represented by the tangency point
E) the consumer should purchase less of both goods
Correct Answer:

Verified
Correct Answer:
Verified
Q36: Scenario 5.1<br>The demand for noodles is given
Q37: The below figure shows the various combinations
Q38: The table below shows the total utility
Q39: The below table shows the average utility
Q40: The below table shows the average utility
Q42: The table below shows the total utility
Q43: The below table shows the average utility
Q44: The below indifference map shows the various
Q45: The table given below depicts the total
Q46: The below table shows the average utility