A consumer is in equilibrium along the portion of an indifference curve that lies below a budget line.

Name: A consumer is in equilibrium along the portion of an indifference curve that lies below a budget line.
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Question

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A consumer is in equilibrium at the point where an indifference curve is tangent to the budget line, not below it. This point represents the combination of goods that maximizes the consumer's utility given their budget constraint.

A Consumer Is in Equilibrium Along the Portion of an Indifference