In a Budget Line/indifference Curve Diagram, at the Consumer Equilibrium

question 211

Multiple Choice

In a budget line/indifference curve diagram, at the consumer equilibrium

• A) any movement upward or downward on the budget line will move the consumer to a less preferred point.
• B) any movement to the northeast to higher indifference curves moves the consumer to a less preferred point.
• C) the slope of the budget line is as much larger as possible than the marginal rate of substitution.
• D) All of the above statements are correct.

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