Question

At equilibrium, the slope of the indifference curve is ______.

• A. equal to the slope of the budget line
• B. greater than the slope of the budget line
• C. smaller than the slope of the budget line
• D. either greater or smaller than the slope of the budget line

Answer 1

The correct option is A equal to the slope of the budget line

This is the point at which the consumer is spending all his income and purchasing the right of amount of both goods to maximize his level of satisfaction.