At the consumer's optimum: a. The indifference curve will intersect the budget constraint at the midpoint of the budget constraint. b. It is still possible for the consumer to increase their consumption of both goods. c. The budget constraint will have a slope of MUx/Px. d. The slope of the indifference curve is equal to the slope of the budget constraint.
Added by Charles P.
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The consumer's optimum refers to the point at which a consumer achieves the highest possible satisfaction, given their income and the prices of goods. This is represented graphically by the point where the consumer's indifference curve is tangent to the budget Show more…
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