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The Point Where an Indifference Curve Just Touches the Budget

Question 172

Multiple Choice

The point where an indifference curve just touches the budget line at one point


A) is the best affordable point.
B) is where the marginal rate of substitution exceeds the relative price by as much as possible.
C) is a point on the consumer's supply of spending curve.
D) cannot be possible because indifference curves always cross the budget line at two points.
E) None of the above answers is correct.

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