If the Combination of Two Goods Is a Point of Tangency

question 189

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 been achieved.
• B) some available income has not been spent.
• C) utility can be decreased by consuming more of both goods.
• D) utility can be increased by consuming more of one good and less of the other.

---

Definitions:

Potential Solutions

Possible answers or methods for solving a problem or dealing with a challenging situation.

Talking Cure

A general term for psychotherapeutic methods that use dialogue between the therapist and the patient to treat psychological disturbances.

Josef Breuer

An Austrian physician and physiologist noted for his key role in the early development of psychoanalysis alongside Sigmund Freud.

Current Symptoms

The existing or ongoing signs or manifestations of a disease or condition as experienced by an individual.