If an Indifference Curve Intersects a Budget Line at Two

question 18

Multiple Choice

If an indifference curve intersects a budget line at two points, we can surmise that:

• A) there are two choices of utility maximizing product combinations
• B) no utility maximizing combination is possible
• C) none of the other three answers
• D) there is a lower budget line where the indifference curve will intersect at only one point

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Definitions:

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