Exhibit 20-6 ​

question 29

Multiple Choice

Exhibit 20-6
​

-Refer to Exhibit 20-6. I₁, I₂ and I₃ are indifference curves and line ab is the relevant budget constraint. The equilibrium position for the consumer is at

• A)any point on the budget constraint.
• B)point M.
• C)point J.
• D)point T.
• E)point R.

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Definitions:

Divide

A mathematical operation where the total quantity is divided into equal parts, and the result shows how many of those parts make up the original amount.

Simplify

The process of altering an expression or equation to make it easier to work with, by combining like terms, reducing fractions, or employing identities.

Simplify

The process of making an expression or equation easier to understand or solve by combining like terms or eliminating complexity.

Operations

Basic mathematical procedures such as addition, subtraction, multiplication, and division.