As per indifference curve analysis consumer equilibrium is attained when
A)slope of indifference curve is constant
B)slopes of both indifference curve and income price line are equal
C)slopes of both indifference curve and income price line are opposite
D)both income price line and indifference curve are parallel.

Question

Quizplus · Accepted Answer

Consumer equilibrium is attained when the slope of the indifference curve (which represents the marginal rate of substitution between two goods) is equal to the slope of the budget line (also known as the income-price line), indicating that the consumer cannot achieve a higher level of satisfaction by reallocating their budget.

As Per Indifference Curve Analysis Consumer Equilibrium Is Attained When