If the Combination of Two Goods Occurs at a Point

question 296

Multiple Choice

If the combination of two goods occurs at 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 and total utility is maximized.
• C)total utility can be increased by consuming less of both goods.D.total utility can be decreased by consuming more of both goods.

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Definitions:

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A marketing model that outlines the process for achieving successful advertising and sales, standing for Attention, Interest, Desire, and Action.