I need the answer as soon as possible 37. The consumer is in equilibrium ata point where the budget lineA. O Is above an indifference curveB. O Is below an indifference curveC. O Is tangent to an indifference curveD. O Cuts an indifference curve

Consumer equilibrium is the point where consumer achieves maximum utility.

Answered: 37. The consumer is in equilibrium at a…

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37. The consumer is in equilibrium at a point where the budget line

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 8RQ: Is it possible for total utility to increase while marginal utility diminishes? Explain.

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Concept explainers

Equilibrium Price and Quantity

Equilibrium refers to a state of balance that comes about because there is equality in all forces.

Question

I need the answer as soon as possible

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

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4. Indifference Curve and Budget Line (20%) Annie has an income of $240 an hour. Popcorn costs $8 a bag, and costs $6 a six-pack of energy drinka. Draw a graph of Annie’s budget line with six-pack of energy drink on the xaxis, and popcorn on the y-axis. (4%)b. What is the slope of Annie’s budget line (2%)? What could this slope be also called? (2%) c. If we know that Annie maximizes her utility with the purchase of 20 bags of popcorn, how many six-pack energy drink she will purchase?-(an estimate from your graph & actual calculation) (5%), draw an indifference curve reflecting this optimum. (5%
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