If the Combination of Two Goods Is a Point of Tangency

question 166

Multiple Choice

If the combination of two goods is a point of tangency between the budget line and an indifference curve, then:

• A) consumer equilibrium has not been achieved.
• B) all available income has been spent.
• C) utility can be increased by consuming less of both goods.
• D) utility can be decreased by consuming more of both goods.

---

Definitions:

Prior Art

All relevant technical knowledge about the field to which the invention belongs.

Technical Knowledge

Expertise or skills in specific fields, particularly those related to science, engineering, technology, or computing.

Commerce Clause

A provision in the United States Constitution that grants Congress the power to regulate trade between states, with foreign nations, and among Indian tribes.