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Suppose Paulina is consuming her optimal consumption bundle of goods 1 and 2. W…
Related Topics
Wize University Microeconomics Textbook > Theory of Consumer Choice
Optimal Bundle (Utility Maximization)
4 Activities
Suppose Paulina is consuming her optimal consumption bundle of goods 1 and 2. Which of the following must be true?
Her budget line is steeper than her highest achievable indifference curve at the optimal consumption bundle.
Her budget line has the same slope as her highest achievable indifference curve at the optimal consumption bundle.
Her highest achievable indifference curve crosses the budget line at the y-intercept at the optimal consumption bundle.
Her highest achievable indifference curve crosses the budget line at the x-intercept at the optimal consumption bundle.
Her budget line is steeper than her highest achievable indifference curve at the optimal consumption bundle.
I don't know
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