The consumer is in equilibrium at a point where the budget line—
A. Is above an indifference curve.
B. Is below an indifference curve.
C. Is tangent to an indifference curve.
D. Cuts an indifference curve.
Answer:C
The consumer is in equilibrium at a point where the budget line—
A. Is above an indifference curve. B. Is below an indifference curve. C. Is tangent to an indifference curve. D. Cuts an indifference curve.