Budget constraint is tangent to an indifference curve

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Suppose you have $120 to spend on food and clothing. The price of food is $4 and the price of clothing is $8. a, Graph your budget constraint; calculate the slope of it. b, Briefly explain why your optimal choice is the point at which your budget constraint is tangent to an indifference curve. Show all steps.

Reference no: EM131006527

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