The consumer is in equilibrium at a point where the budget line :

CA Foundation · Business Economics · MTP · April 2025
The consumer is in equilibrium at a point where the budget line :
(A) A. is above an indifference curve
(B) B. is below an indifference curve
(C) C. is tangent to an indifference curve
(D) D. cuts an indifference curve

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. is tangent to an indifference curve

Topics: Theory of Demand and Supply

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