At the consumers optimum, At the consumer's optimum:

At the consumers optimum

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Reference no: EM13684371

At the consumer's optimum:

1. It is still possible for the consumer to increase his consumption of both goods.

2. The slope of the indifference curve is equal to the slope of the budget constraint.

3. The budget constraint will have a slope of MU_x/P_x.

4. The indifference curve will intersect the budget constraint at the midpoint of the budget constraint.

Reference no: EM13684371

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