In an Indifference Curve/budget Line Diagram, at Your Consumer Equilibrium

question 407

Multiple Choice

In an indifference curve/budget line diagram, at your consumer equilibrium, that is, your best affordable point, which of the following statements is correct?

• A) Any movement upward or downward on your budget line will move you to a less preferred point.
• B) Any movement upward or downward on your indifference curve will move you to a less preferred point.
• C) Your marginal rate of substitution is greater than the magnitude of the budget line by as much as possible.
• D) All of the above are correct.

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