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? Utility can be increased by consuming less of one good. The consumer is in equilibrium. The optimal consumption bundle has been found. All available income has been spent.
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? Utility can be increased by consuming less of one good. The consumer is in equilibrium. The optimal consumption bundle has been found. All available income has been spent.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 22SQ
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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?
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Utility can be increased by consuming less of one good. |
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The consumer is in equilibrium. |
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The optimal consumption bundle has been found. |
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All available income has been spent. |
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