The Consumer's Optimal Consumption of X and Y Occurs Where

question 30

Multiple Choice

The consumer's optimal consumption of X and Y occurs where the consumer:

• A) reaches the highest indifference curve that intersects the budget constraint.
• B) reaches the highest budget constraint that is tangent to the indifference curve.
• C) reaches the lowest indifference curve that intersects the budget constraint at any point.
• D) reaches the highest indifference curve that is just tangent to the budget constraint.
• E) is satiated with X and Y.

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