At equilibrium, the slope of the indifference curve is (a ) equal to the slope of...

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 or can either be equal, greater or smaller than the slope of the budget line.

Expert Solution

At equilibrium, the slope of indifference curve is equal to slope of budhet line where slope of indifference curve is marginal rate of substitution and slope of budget line is ratio of price.

Option A is correct

Rahul Sunny answered 1 year ago

1. In words, what information is contained in the slope of an indifference curve? Why are...

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Question

At equilibrium, the slope of the indifference curve is (a ) equal to the slope of...

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Expert Solution

Related Solutions

1. In words, what information is contained in the slope of an indifference curve? Why are...

Define indifference curve approach and explain the conditions of consumers equilibrium

True or False: The value of the price elasticity of demand is equal to the slope of the demand curve.

True or False: The value of the price elasticity of demand is not equal to the slope of the demand curve.

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HEALTH ECONOMICS CLASS Indifference Curves and Preferences a. Using a picture of an indifference curve, illustrate...

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