Explain the Relationship Between the Budget Constraint and Indifference Curve

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The Answer is Because the budget constraint is tangent to the indifference curve at a consumer's optimum, the slope of the budget constraint (relative market prices) and the slope of the indifference curve (the marginal rate of substitution) are equal at the optimal consumption point and only at that point.

Explain the Relationship Between the Budget Constraint and Indifference Curve

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