Assume That a Combination of Two Goods Reflects a Point

question 320

Multiple Choice

Assume that a combination of two goods reflects a point of tangency between the budget line and an indifference curve.In this situation, which of the following is incorrect?

• A)Consumer equilibrium has been achieved.
• B)All available income has been spent.
• C)Utility can be increased by consuming less of both goods.
• D)The optimal consumption bundle has been reached.

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Definitions:

Agitated

A state of nervousness or unrest, often displayed through physical movements or verbal expressions of unease.

Withdrawing

The act of pulling back or removing oneself from participation in an activity or interaction.

Do Not Disturb Sign

A notice displayed to request privacy or indicate that interruptions are unwelcome at that time, often used in hotels.

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A condition of slow blood flow in the veins, typically in the legs, which can lead to swelling, pain, and complications like varicose veins or venous ulcers.