At the best affordable point, which statement is true? A. The highest affordable indifference curve has the same intercept as the budget line. B. The slope of the indifference curve equals the slope of the budget line. C. Some income is not spent. D. Other points on the same indifference curve are affordable but not preferred.
At the best affordable point, which statement is true? A. The highest affordable indifference curve has the same intercept as the budget line. B. The slope of the indifference curve equals the slope of the budget line. C. Some income is not spent. D. Other points on the same indifference curve are affordable but not preferred.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 9SQ
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Question
At the best affordable point, which statement is true?
A.
The highest affordable indifference curve has the same intercept as the budget line.
B.
The slope of the indifference curve equals the slope of the budget line.
C.
Some income is not spent.
D.
Other points on the same indifference curve are affordable but not preferred.
E.
The marginal rate of substitution between two goods equals their absolute price.
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