General Knowledge · Microeconomics
A consumer moves from point A to point B along the same indifference curve. Which of the following statements is true?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Budget constraint shifts outward
- 2Total utility remains unchanged despite change in combination of goods✓
- 3Consumer's utility increases due to substitution effect
- 4Marginal rate of substitution remains constant
Correct answer
Total utility remains unchanged despite change in combination of goods
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