Question
The following relates to indifference curves and the budge constraint curve. Which of the below statements is false ? a)All points on a demand curve
The following relates to indifference curves and the budge constraint curve. Which of the below statements isfalse?
a)All points on a demand curve correspond to a consumer optimum between an indifference curve and a budget constraint curve.
b) A decrease in the price of an item causes the budget line to rotate outward and generates a new consumer optimum.
c) Each point along the same indifference curve corresponds to the same level of total utility.
d) All points along the same budget curve correspond to the same income level.
e) When graphing an indifference curve, the x-axis represents the quantity of the good and the y-axis represents the price of the good.
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