When a Consumer Is Consuming at a Point Where His

question 192

Multiple Choice

When a consumer is consuming at a point where his or her budget line is not as steep as his or her indifference curve, then he or she should

• A) consume more of the good that is measured on the horizontal axis.
• B) consume less of the good that is measured on the horizontal axis.
• C) not change his or her behavior.
• D) consume none of the good that is measured on the horizontal axis.

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Definitions:

Injunction

A legal order issued by a court that compels a party to do or refrain from specific acts.

Judicial Proceeding

A formal process before a court of law involving the adjudication of legal claims or disputes.

Contract

An agreement that can be enforced in court; formed by two or more parties, each of whom agrees to perform or to refrain from performing some act now or in the future.

Federal Statute

A law enacted by the national government of a country.