Assuming the Properties of Normal Indifference Curves, a Consumer Will

question 12

True/False

Assuming the properties of normal indifference curves, a consumer will maximize his utility where his indifference curve is just tangent to his budget constraint.

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Definitions:

Pairs

Two things that are designed to be used together or are similar in nature, often considered as a unit.

Demand Function

A mathematical equation that describes the quantity of a good or service demanded at various prices.

Consumer's Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually pay.

Mead

An alcoholic beverage created by fermenting honey with water, sometimes with various fruits, spices, grains, or hops included.