Economics · Microeconomics

When a consumer is in equilibrium while purchasing two commodities, which line acts as a tangent to the Indifference Curve?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1Demand line
2Price line (Budget line)✓
3Supply line
4Marginal revenue line

Correct answer

Price line (Budget line)

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When a consumer is in equilibrium while purchasing two commodities, which line acts as a tangent to the Indifference Curve?

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When a consumer is in equilibrium while purchasing two commodities, which line acts as a tangent to the Indifference Curve?

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