The consumer's utility-maximising point is where... a. The consumer's marginal utility curve is tangent to the relevant budget line. b. The price-consumption line is tangent to the budget line. c. The indifference curve farthest from the origin intersects with the budget line that is farthest from the origin. d. Each indifference curve has the same slope as the relevant budget line. e. One indifference curve is tangent to the relevant budget line.
The consumer's utility-maximising point is where... a. The consumer's marginal utility curve is tangent to the relevant budget line. b. The price-consumption line is tangent to the budget line. c. The indifference curve farthest from the origin intersects with the budget line that is farthest from the origin. d. Each indifference curve has the same slope as the relevant budget line. e. One indifference curve is tangent to the relevant budget line.
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter20: Consumer Choice And Elasticity
Section: Chapter Questions
Problem 4CQ
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Q14
The consumer's utility-maximising point is where...
a.
The consumer's marginal utility curve is tangent to the relevant budget line.
b.
The price-consumption line is tangent to the budget line.
c.
The indifference curve farthest from the origin intersects with the budget line that is farthest from the origin.
d.
Each indifference curve has the same slope as the relevant budget line.
e.
One indifference curve is tangent to the relevant budget line.
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